Chancellor planning tax changes to attract wealthy back to the UK

Newsletter issue – May 2026

The Chancellor, Rachel Reeves, is preparing a package of tax breaks aimed at high earners, particularly those who left the UK following recent tax rises. The focus is on wealthy residents in Gulf countries, many of whom are reconsidering their location due to instability linked to the Iran conflict.

The government wants to signal that Britain is 'open for business' and Ms Reeves has used the recent IMF meetings in Washington to promote the UK as a competitive destination for investment and residency. A senior Treasury official says geopolitical risk is reshaping where people choose to live and invest, and the UK wants to respond strategically.

The Treasury will launch a formal consultation on how Limited Liability Companies (LLCs) are taxed, as this has been a sticking point for potential wealthy arrivals. The review will look at targeted reliefs for new arrivals and possible reforms to offshore structures.

The Chancellor has faced criticism that her earlier tax increases drove millionaires out of the UK. The government hopes these new measures will reverse the exodus and bring high earners back.