The recent changes announced in the UK Budget could have a significant impact on French individuals looking to work and invest in the UK, according to Blick Rothenberg, a leading tax, audit, and business advisory firm. Vanesha Kistoo, Head of the firm’s French Desk, expressed concerns about the new restrictions on tax relief for individuals traveling between the UK and France for work.
Under the new Overseas Workdays Relief (OWR) claim, individuals will now see their tax relief restricted to 30% of their qualifying employment earnings. This restriction becomes even more burdensome if the calculated relief exceeds £300,000 in a tax year. These changes could place a high tax burden on French individuals coming to the UK for work.
In addition to the tax implications, post-Brexit immigration requirements now require individuals to limit their time in the UK or obtain a visa for longer stays. Starting next year, Europeans will also need to comply with ETA requirements to enter the UK as visitors, adding another layer of administrative burden for French individuals traveling to the UK for work.
As a result of these changes, there has been a noticeable shift in the working arrangements of individuals traveling between the UK and France. While remote business meetings are an option, expats working in the UK who need to spend more than 30% of their time outside the country may face penalties and further restrictions on tax relief.
Vanesha emphasized the importance of encouraging European individuals to come to the UK to invest and work for the growth of the economy. Instead of imposing heavier tax burdens and administrative travel requirements, the UK government should focus on attracting and retaining talent from Europe to support economic growth.
Overall, the new tax and immigration changes announced in the UK Budget could deter French individuals from moving to the UK for work and investment opportunities. It is crucial for the government to strike a balance between tax policies that generate revenue and attracting foreign talent to support economic growth and fill any gaps in the country’s finances.