The Chancellor, Rachel Reeves needs to attract American businesses and individuals to the UK in the Spring Statement to improve economic growth

Alex Straight, a US/UK Private Client Tax Partner, said:

The UK economy is struggling to grow, and Foreign Direct Investment (FDI) is the stimulation it needs. America is a valuable source of talent, wealth and successful businesses that we should be looking to attract in the Spring Statement.”He added: “The Foreign Income and Gains (FIG) regime is attractive to Americans coming to the UK for the first time as it offers them tax relief on income earned in the US. However, the FIG regime is only four years long, extending its length at the Spring Statement would encourage Americans to stay in the UK for longer to work and invest.

The UK remains one of the most popular destinations for high-net-worth Americans, who have to pay US taxes wherever they live, but current immigration options are limiting their ability to live here. Rachel Reeves should create additional immigration routes that enable high net worth individuals, from low-risk countries and key allies such as the US to stay in the UK long term.

Making it easier for Americans to bring their families to the UK would also be advantageous, as the UK’s education system is attractive and many higher education facilities benefit financially from international students.

Alex said:

Any other tax changes that benefit and help grow UK businesses would also benefit American businesses that expand and employ people in the UK. Reversing the rise in National Insurance Contributions (NICs) would be a good start, as many businesses have had to revise their plans to hire more staff due to the additional cost pressures this will cause.

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If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or contact Alex using the form below.