The Autumn Budget 2025 landed with a few surprises, some of which didn't even make it into the Chancellor's speech. If you're living abroad, working remotely, or planning to leave the UK, these changes could have a real impact on your tax position over the next few years.
Here's what you need to know, broken down into seven key areas.
If you're planning to leave the UK temporarily and return within five years, the temporary non-resident rules have just become significantly stricter.
Previously, if you received dividends from a close company (typically a business you own or control) while living overseas, only dividends paid from profits that arose after your departure were taxable if you returned to the UK within five years. That exemption has now been removed.
From now on, all dividends you receive during your period of temporary non-residence will be taxable if you trigger the temporary non-resident rules by returning to the UK. It doesn't matter whether the dividends are paid from pre-departure or post-departure profits, they all come within the scope of UK taxation.
What this means in practice:
If you're planning an exit strategy or considering returning to the UK after a period abroad, you'll need to factor this into your dividend planning carefully.
For non-residents receiving UK dividend income, the government is removing the basic rate dividend tax credit from 6 April 2026.
For most of our clients, this won't have a major impact, especially if you're already using the disregarded income basis to limit tax withheld at source. However, if you have UK dividend income and haven't optimized your position, this change could result in a higher effective tax rate.
The key takeaway: if you're non-resident and receiving UK dividends, review your structure now to ensure you're not caught out when this change takes effect.
This is a big one for expats who want to maintain their UK state pension entitlement while living abroad. From 6 April 2026, the government is making two significant changes to voluntary National Insurance contributions:
a) Class 2 contributions are being removed for non-residents and individuals abroad
You'll now need to make the more expensive Class 3 contributions to maintain your qualifying years.
b) A new 10-year eligibility requirement
To be eligible to make voluntary contributions at all, you must now demonstrate at least 10 years of qualifying contributions to the National Insurance system.
What this means:
If you're living abroad and relying on voluntary contributions to protect your UK pension, you need to act before April 2026. We recommend reviewing your NI record and understanding whether you meet the new 10-year threshold.
The government is raising tax rates on three major income streams, and the increases are being phased in over the next few years.
Property Income Tax Rates (effective from 2027/28)
Savings Income Tax Rates (effective from 2027/28)
Divideind Income Tax Rates (effective from 2026/27)
If you own UK rental property or have significant savings or dividend income, these changes will reduce your after-tax returns. The dividend rate increases come into effect first, from April 2026, so that's your most immediate planning window.
For expats with UK property portfolios, the 2027/28 changes mean you'll be paying an extra 2% on all rental profits. That might not sound like much, but on a £50,000 rental income, that's an additional £1,000 in tax.
This one won't hit until April 2029, but it's worth flagging now if you're using salary sacrifice to boost your pension contributions tax-efficiently.
Currently, when you sacrifice salary into a pension, you save both income tax and National Insurance (employee and employer contributions). It's one of the most tax-efficient savings strategies available.
From 6 April 2029, the government is capping the amount of National Insurance relief you can receive through salary sacrifice pension contributions at £2,000 per year.
What this means:
If you're currently sacrificing significant amounts of salary into your pension (say, £10,000+ per year), this change will reduce the overall tax benefit. You'll still receive income tax relief, but the NI saving will be capped.
If you're employed and have been claiming tax relief for working from home expenses, that's coming to an end.
From 6 April 2026, the government will no longer allow tax relief to be claimed for working-from-home expenses if you're in employment.
This affects:
The relief wasn't huge to begin with (around £125 per year in tax savings for basic rate taxpayers), but it was a small acknowledgment of the costs of running a home office. That acknowledgment is now being withdrawn.
This is a brand-new tax, and it applies to residential properties in England worth £2 million or more. The High Value Council Tax Surcharge (HVCTS) will be levied on owners of the property and comes into effect from the 2028/29 tax year. Here's how the charges break down:
Property Value: Annual HVCTS Charge
What this means:
For non-residents with UK property portfolios, this adds another layer of cost to holding UK real estate. Combined with the higher property income tax rates coming in 2027/28, the math on keeping a UK property just got more complicated.
If you need help navigating these changes, get in touch with Global Tax Consulting. We specialize in expat and non-resident tax planning, and we can help you understand exactly how the Autumn Budget 2025 affects your specific situation.
GTC explain your obligations as a remote employee or freelancer including your eligibility for a tax refund from HMRC.
GTC explain how expatriates can continue building entitlement to the state pension through voluntary national insurance contributions.
GTC explain changes to UK tax law in respect of the new FIG scheme and abolition of the existing non dom regime.
GTC explain how you can reduce your tax bill in the UK through pension contributions, ISA contributions and EIS investments.
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