Insights
By: Henry Moss
Family Investment Conference 2024
Exploring the tax and lifestyle factors driving families to relocate from the UK
The recent changes to UK tax regulations have sparked numerous conversations among families about the possibility of relocating before April 2025. Speaking at Stonehage Fleming’s Family Investment Conference, in London last week, Henry Moss, Director, Stonehage Fleming Law, shed light on relocation trends and the key considerations for clients navigating these complex family decisions.
“Some families are staying, but others will be so adversely impacted by these rules that they feel they have no choice but to leave the UK,” Henry explained. The choice of destination, he noted, depends on several factors. “For some, the move is rooted in historical family ties, while others prioritise lifestyle, seeking a city or country that aligns with how they wish to live.”
According to Henry, Italy has emerged as a prominent choice among his client base, offering a lump sum tax regime that has recently increased from €100,000 to €200,000. Switzerland offers opportunities for some while Monaco and the Channel Islands also remain attractive for their advantageous tax environments. “Further afield, destinations such as Dubai, Hong Kong, and Singapore are gaining popularity, while some families are even willing to embrace the higher taxes of the United States in exchange for lifestyle benefits.”
However, relocating isn’t just about establishing residency elsewhere. As Henry emphasised, it is equally important to ensure you cease to be resident in the UK to avoid the complications of dual residency. “The UK doesn’t pay much attention to whether you’ve become a resident in another country. It focuses on whether you satisfy the statutory residence test,” he explained. “The test, which defines residency based on a range of criteria, requires careful management—particularly for families who plan to continue visiting the UK after their move.”
Henry highlighted the role he and his colleagues, globally, play in facilitating these transitions. “The beauty of Stonehage Fleming’s presence in many of these jurisdictions is that we have lawyers all over the world who can coordinate advice seamlessly, ensuring nothing gets missed, whether technically or practically,” he said.