The UK Autumn Budget, announced on 28 October 2026, introduces several tax changes that could affect individuals with financial interests across multiple jurisdictions.
Although headline income tax rates on employment earnings remain unchanged, increases to rental and savings income tax, changes to business disposal relief and developments in inheritance tax have important implications for individuals with overseas assets or UK financial interests.
Whether you are a UK resident with overseas investments, a non-UK resident holding UK property or considering relocating to the UK, understanding how these changes affect your tax position is essential.
SAIL International considers the key implications.
At a glance: The changes you need to know
- Rental and savings income: Tax rates increase by two percentage points from 6 April 2027. This is a further 2 percentage points on top of the rise announced at Budget 2025.
- Business Asset Disposal Relief: The lifetime limit reduces from £1 million to £500,000 for qualifying disposals from 6 April 2027.
- Inheritance tax: Changes to trust-related liabilities take effect from 28 October 2026, alongside the existing residence-based inheritance tax rules.
- International tax residence: Moving to or leaving the UK can affect how worldwide income, gains and assets are taxed.
- Offshore compliance: HMRC is increasing its focus on offshore financial arrangements and reporting obligations.
The impact will depend on where you are tax resident, where your assets are held and whether relief is available under the relevant tax legislation and double taxation agreements.
1. UK residents with overseas assets
Living in the UK does not mean that your overseas financial interests fall outside the UK tax system.
UK tax residents are generally liable to UK tax on their worldwide income and gains, subject to applicable exemptions, reliefs and special regimes.
Higher taxes on overseas rental and savings income
From 6 April 2027, income tax rates on property and savings income will increase by two percentage points.
| Tax band | Property income | Savings income |
|---|---|---|
| Basic rate | 24% | 24% |
| Higher rate | 44% | 44% |
| Additional rate | 49% | 49% |
The property income increases apply in England, Wales and Northern Ireland, while the savings income increases apply throughout the UK. Scotland has a separate income tax framework for property income.
These changes are particularly relevant to UK residents receiving rental income from overseas properties or interest from foreign bank accounts and investments.
For example, a UK resident receiving rental income from a property in South Africa may also be subject to tax in South Africa. Foreign tax credits and double taxation agreements may provide relief, but differences in tax rates and taxable income calculations can still result in additional UK tax.
Could your overseas assets be subject to UK inheritance tax?
Under the UK’s residence-based inheritance tax rules, individuals who have been UK tax resident for at least 10 of the preceding 20 tax years may become liable to UK inheritance tax on their worldwide assets.
Importantly, leaving the UK does not necessarily end this exposure immediately. Depending on an individual’s residence history, inheritance tax exposure can continue for between three and ten tax years after departure.
The Budget also introduces changes to inheritance tax liabilities associated with trusts, effective from 28 October 2026.
For individuals with overseas property, investments or family trusts, this could mean that their UK inheritance tax exposure extends beyond assets physically held in the UK.
2. Non-UK residents with UK assets
Living outside the UK does not automatically remove your UK tax obligations. Certain UK-source income, capital gains and assets can remain subject to UK tax.
For international investors and property owners, the Budget introduces several changes worth considering.
UK rental property: Higher tax from April 2027
From 6 April 2027, the increased property income tax rates will also affect non-UK resident landlords.
For example, an individual living in South Africa who owns a rental property in the UK will remain liable for UK tax on the rental profits. The income may also need to be declared in their country of tax residence, where worldwide income is taxable.
Relief under the applicable double taxation agreement and foreign tax credit provisions may reduce double taxation. However, the final liability will depend on the individual’s circumstances and the tax treatment in each country.
Non-resident landlords should also consider their obligations under the UK’s Non-Resident Landlords Scheme and applicable tax reporting requirements.
Selling UK property or business interests?
UK property gains can remain subject to UK capital gains tax even where the owner is non-resident. The disposal may also have tax implications in the individual’s country of residence.
The acquisition cost, improvements, ownership structure and residence position can all influence the final tax liability.
The Budget also reduces the lifetime limit for Business Asset Disposal Relief from £1 million to £500,000 for qualifying disposals made from 6 April 2027. Qualifying gains will continue to benefit from an 18% capital gains tax rate, subject to the relevant conditions.
This may affect non-UK residents holding qualifying UK business interests or considering the sale of a UK business or shareholding.
3. Considering relocating to the UK?
For individuals planning to move to the UK, the timing of their relocation and the treatment of existing overseas assets can significantly influence their future tax liabilities.
When do you become UK tax resident?
The UK’s Statutory Residence Test determines whether an individual becomes UK tax resident. It considers factors including days spent in the UK, accommodation, employment and personal connections.
Once UK tax resident, individuals are generally subject to UK tax on worldwide income and gains, unless specific reliefs apply.
This means that existing overseas rental properties, investments, business interests and other income sources may need to be included in your UK tax position.
The four-year Foreign Income and Gains (FIG) regime
Introduced in April 2025, the UK’s Foreign Income and Gains regime remains an important consideration for individuals moving to the UK.
Individuals who have been non-UK tax resident for at least ten consecutive tax years may qualify for relief on eligible foreign income and gains during their first four years of UK residence.
For individuals relocating with substantial overseas investments, businesses or rental properties, understanding the eligibility requirements and available reliefs can create valuable tax-planning opportunities.
Will you have UK inheritance tax exposure in the future?
Individuals intending to settle permanently in the UK should also consider the longer-term inheritance tax implications.
Under the existing residence-based framework, individuals generally become subject to UK inheritance tax on worldwide assets once they meet the relevant long-term residence requirements. Exposure may also continue for a period after leaving the UK.
For individuals with property, investments and family trusts held in different countries, these rules should form part of their longer-term financial and estate planning.
4. HMRC is increasing its focus on offshore tax compliance
The Budget signals continued scrutiny of offshore financial arrangements.
The government has announced a consultation on reforming offshore tax penalties and further measures to strengthen HMRC’s approach to wealthy taxpayers.
For individuals with financial interests across multiple jurisdictions, this reinforces the importance of ensuring that foreign income, gains and assets are correctly reported.
5. What should you do next?
The Budget will not affect everyone in the same way. However, if you have financial interests in the UK and other countries, now is a good time to consider whether your existing arrangements remain appropriate.
Taking advice before relocating, selling assets or undertaking a significant financial transaction can help identify potential tax liabilities and available planning opportunities.
How SAIL International can help
Managing tax affairs across borders requires an understanding of how different tax systems interact. A decision made in one country can have tax consequences in another.
SAIL International provides specialist cross-border tax advice to individuals, expatriates, business owners and internationally mobile families.
Whether you are a UK resident with overseas assets, a non-UK resident with UK investments or considering relocating to the UK, SAIL International can help you understand your tax obligations and assess the implications of your international financial arrangements.
Don’t leave your cross-border tax position until a liability arises.
Contact SAIL International to discuss how the UK Autumn Budget 2026 may affect your international tax affairs.
Disclaimer: This article provides general information based on the UK Autumn Budget announced on 28 October 2026. Certain measures remain subject to legislation or further guidance. Tax treatment depends on individual circumstances, residence status, asset ownership and applicable double taxation agreements. Professional advice should be obtained before making tax or financial decisions.