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The recent UK Autumn Budget represents one of the most significant fiscal shifts in recent years. It introduces a range of meaningful tax and policy changes with clear implications for entrepreneurs and business owners.
For those operating within the UK, these updates call for a fresh review of both business and personal tax strategies. With the UAE continuing to offer stability, efficiency, and a low-tax environment, it increasingly stands out as a serious alternative for long-term wealth preservation and relocation planning.
Key Changes in the 2024 Budget for Entrepreneurs
1. Capital Gains Tax (CGT)
CGT rates have increased to 18% and 24% for lower and higher bands respectively (up from 10% and 20%), affecting disposals from 30 October 2024 onward. Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) will also rise to 14% by April 2025 and 18% by April 2026. These changes directly impact exit proceeds, reducing net returns for founders planning to sell assets or equity stakes — a crucial factor for those managing liquidity events or succession strategies.
2. National Insurance Contributions (NICs)
Three key changes reshape employer costs:
- Employer NICs will rise from 13.8% to 15% by April 2025.
- The Secondary Threshold (the point at which NICs become payable) drops from £9,100 to £5,000.
- Employment Allowance doubles from £5,000 to £10,500.
While the allowance increase provides some relief, most small and mid-sized firms will still face a net rise in employment costs, warranting tighter budgeting and payroll planning.
3. Inheritance Tax (IHT) and the End of Non-Domicile Benefits
From April 2025, the UK moves from a domicile-based to a residence-based system, with limited exemptions for foreign income and gains. Offshore trusts will no longer provide lasting shelter from IHT beyond an initial four-year window.
From April 2026, IHT relief for agricultural and business property will apply only to the first £1 million in assets, with a 50% relief cap on any excess — effectively exposing half of a business’s remaining value to a 20% tax.
A new 10-year exit rule will further expand IHT’s reach, bringing global assets into scope if an individual has been UK-resident for 10 of the past 20 years. Collectively, these reforms demand proactive, cross-border estate and succession planning.
The UAE: A Strategic Alternative
For UK entrepreneurs navigating this new fiscal landscape, the UAE offers a compelling alternative for both business and personal relocation. The tax differential between the two jurisdictions has never been greater.
Optimised Tax Framework
The UAE levies no personal income, capital gains, or inheritance taxes, providing an immediate advantage for wealth preservation. Its stable policy environment contrasts sharply with the UK’s cyclical budget changes.
Pro-Business Ecosystem
Free zones across Dubai and Abu Dhabi provide 100% foreign ownership, light-touch regulation, and streamlined incorporation. The 5% VAT rate remains low by global standards (with exemptions for key sectors) helping sustain both consumer and business confidence.
Global Connectivity
As international hubs, Dubai and Abu Dhabi connect seamlessly to Europe, Asia, and Africa. This geographic advantage enables entrepreneurs to maintain operational reach while optimising residency and tax status.
Next Steps
Given the scale of the UK’s fiscal adjustments, many entrepreneurs and families are reassessing their long-term plans. Relocating to a jurisdiction that blends tax efficiency with stability and global reach, such as the UAE, can safeguard wealth while unlocking new opportunities for growth and diversification.
At Aument Capital, we work with founders and families to design cross-border structures that protect, preserve, and deploy capital with institutional precision and entrepreneurial agility.
