A UK exit tax? What it could mean, and what to do now

What's on the table

• The date. The Autumn Budget is on Wednesday 28 October 2026.¹
• The idea. Commentators have listed a capital gains "exit tax" for individuals leaving the UK permanently among the options before the Chancellor.¹ The opposition has urged him to rule it out.²
• The signals. The Chancellor is reported to have decided against raising capital gains tax rates, partly because wealthy people might delay sales or move assets abroad.³ As of 23 October, an exit tax has not been ruled out publicly.
• Today's rules. The UK has no general exit tax for individuals. Leaving doesn't normally trigger tax on unrealised gains, although UK property stays taxable for non-residents, and gains taken while abroad can be caught if you return within a few years.⁴

How exit taxes work elsewhere

Several countries already tax departing residents. Most treat you as if you had sold certain assets on the day you leave, and tax the gain:

• France applies it to people resident for six of the last ten years with large shareholdings, from €800,000.
• Germany targets shareholdings of 1% or more, for people taxed there for seven of the last twelve years.
• Norway covers shares and other financial assets above a threshold.

Most allow the tax to be deferred or paid over time.⁴ If the UK adopts one, specialists expect a targeted charge on investment holdings, probably taking effect on the day it's announced.⁴

What to do this week, before 28 October

1. Book an hour with your UK tax adviser now. Not after the Budget, when every adviser's phone is ringing. If changes come, they can apply from Budget day itself, so the useful conversation is the one you have before it.
2. Bring a one-page list. Your main assets, roughly what each cost and what it's worth today: shares, funds, a business, property. Your adviser can tell you in minutes where an exit tax, if it came, would matter and where it wouldn't.
3. Know your residence position. UK tax residence is decided by the Statutory Residence Test, year by year.⁵ Ask your adviser where you stand and what would change it.
4. Don't make irreversible moves in a hurry. Selling, gifting or leaving in a rush can cost more than the tax you were trying to avoid. Decide with advice, not with headlines.

What to do after the Budget, whatever it says

• If an exit tax is announced, read the detail with your adviser: who it applies to, which assets, the thresholds, and whether payment can be deferred. Then set your timeline deliberately.
• If it isn't, use the certainty. You have time to plan a move or a second base properly, in the right order, without pressure.
• Either way, remember inheritance tax. Since April 2025, UK inheritance tax follows long-term residence, and it can continue to apply for up to ten years after you leave.⁶ It belongs in every plan.

Have the Florida side ready in parallel

The families who move well don't wait for one country's rules to settle before preparing the other side. While your UK adviser works on the UK questions, you can prepare these:

• Getting here. British Airways and Virgin Atlantic fly nonstop from London Heathrow to Miami and Orlando, and there are direct flights from England to Tampa.⁷
• No state income tax. Florida's constitution bars a state tax on the income of individual residents, and Florida has no state estate or inheritance tax.⁸ U.S. federal tax still applies, so the full picture is for your advisers.
• Treaties. The United States and the UK have an income tax treaty and an estate and gift tax treaty.⁹ Used properly, they help avoid paying twice.
• Your status. British citizens can usually visit for up to 90 days at a time under the Visa Waiver Program, with an approved ESTA.¹⁰ The UK is also a treaty country for the E-2 investor visa, which can allow someone who invests in and runs a U.S. business to live here while it operates.¹¹ A U.S. immigration attorney confirms what fits.
• Days, structure and money. Count your U.S. days from the start, decide with counsel how any property will be held before you sign, and plan the pounds-to-dollars conversion instead of accepting a bank's screen rate. See why the property comes last and moving the money.

How we help

We don't replace your UK adviser; we make sure the Florida side is ready when they say it's time. We set out the U.S. steps in the right order, introduce cross-border accountants, attorneys, immigration counsel, insurers, lenders and, when you're ready, a licensed real estate brokerage, and keep everyone working from one plan. Calmly, discreetly, and at your pace.

Thinking about your options before or after 28 October? Tell us where you are and we'll reply within one business day. See also what applies to Britain and Ireland.