UK chancellor to review double taxation rules in bid to attract expats

UK chancellor Rachel Reeves is set to review double taxation rules affecting US earners who move to the UK in a bid to attract expats, particularly those fleeing Gulf countries.

Following the abolition of the non-dom regime a year ago, individuals receiving income from a US limited liability company who move to the UK must pay tax on both sides of the Atlantic.

Reeves will try to make amends with internationally mobile professionals – such as American citizens who have left the Gulf but are reluctant to move back to the US – during a visit to Washington this week after the Labour government’s tax changes drove many overseas, the FT reports.

On Wednesday, Reeves will state the UK is “open for business” and a “safe harbour economy” in a volatile world when geopolitical risk is reshaping decisions about where people live, invest and build companies, officials told the FT ahead of the visit. One in eight British residents in the UAE has left the country since the start of the war.

A consultation on the rules will be launched in due course.