VIDEO Banking & Finance GCC investors in UK warned of new tax liabilities By Shruthi Nair July 17, 2024, 1:59 PM The newly elected Labour government is expected to introduce a range of tax changes that will impact British expatriates living overseas, non-doms and the UK’s community of wealthy foreign investors. Tax consultants suggest that GCC investors considering selling their UK assets should do it “sooner rather than later” to escape the hikes that could significantly affect their earnings. Non-doms – UK residents whose permanent home is outside the UK – currently only pay tax on money earned in the UK. However, the Labour government has announced plans that those who move to the UK after April 2025 will also have to start paying taxes on money earned overseas after the first four years. NewsletterGet the Best of AGBI delivered straight to your inbox every week This will especially impact the ultra-rich based in the UK, who will now have to pay tax on all their international assets. Arab UK residents who currently hold non-dom status will feel the pinch, as well as non-doms with assets in the Middle East. A report by Henley and Partners says the UK is expected to experience a net loss of 9,500 millionaires in 2024, many of whom might look at moving to the UAE to escape the widening tax net. via ReutersThe Labour government under new prime minister Keir Starmer may merge capital gains tax with income tax The Labour government may also merge capital gains tax (CGT) – the tax levied on profits earned when an asset is sold – with income tax. At present the CGT rate ranges between 10 percent for those within the basic income tax band of £50,270 ($65,497) and can go up to a maximum of 28 percent on any amount above it. The possible CGT-income tax merger would mean that any gains on assets including residential property would be treated as income. More videos from AGBI Dubai and Abu Dhabi need some IPO diversity ‘It’s survival of the fittest’, says Oman Air CEO CEO calls for regulation to raise Dubai real estate standards Those with earnings of more than £125,140 are liable to pay 45 percent income tax, so this could potentially lead to people paying higher taxes as the gains after sale will push people to a higher tax bracket. GCC investments in UK real estate are expected to reach $3.2 billion in 2024 according to a report by the Bank of London and the Middle East. To find out more, watch our interview with Steven Ireland, managing partner at Evolution Consulting.
