The 2025 UK Budget. A Tougher Landscape for Global Families
The 2025 UK Budget has landed and the reaction for many international families will be the same. A sigh and a sense that things just became a little less welcoming. The government has opted for one of the biggest revenue raising packages in years, and while nothing here is explosive, the direction is unmistakable. More tax, tighter rules, fewer allowances. For families who move between countries or are weighing up their next destination, the UK is still compelling, but this Budget makes clear that the fine print matters more than ever.
Key Announcements at a Glance
An additional £26B in tax revenue planned
Income tax and National Insurance thresholds remain frozen
Higher taxes on dividends, savings and property income
A new property surcharge for homes valued above two million pounds beginning in 2028
Pension salary sacrifice benefits limited to £2K per year from 2029
Future mileage based charges for electric vehicle users
The two child benefit cap removed
No change to core income tax, National Insurance or VAT rates
What This Means for Globally Mobile Families
The UK continues to be one of the most attractive destinations in the world for education, culture, stability and long term opportunity. These strengths remain unchanged. However the new fiscal environment means families will need to think more carefully about how they structure their time, their assets and their presence in the country. The cost of participating at the upper end of the market is increasing and the tax efficiency of certain arrangements is narrowing.
For families considering a move to the UK
The attractions remain powerful. World leading schools and universities. Strong cultural and creative industries. A deep professional and financial ecosystem. Global connectivity and ease of access. The Budget does not remove these advantages. It simply makes planning more important. Families who are thinking of relocating will benefit from clearer structuring around residency, property ownership and investment income from the start.
For families considering a move away from the UK
Other hubs will look increasingly attractive for different reasons
Dubai offers tax efficiency, lifestyle and an accelerated pace of growth
Monaco remains a safe, discreet and highly predictable environment with no income tax
Singapore provides strong rule of law, excellent education and a pro business climate
For some families the Budget may speed up discussions that were already in progress. For others it simply adds another factor to weigh when comparing global options.
A final note
Tax landscapes are shifting across all major destinations. The families who adapt best are the ones who plan early and make decisions with clarity. Whether a family is arriving, leaving or exploring alternatives, thoughtful preparation will always create better outcomes.