Entrepreneurs looking to UK for business exit opportunities under Fig regime

Demand for private client services is soaring as family businesses and non-doms await the Autumn Statement 2024's impact. (Source FT Adviser)

A new trend is emerging: international entrepreneurs are increasingly looking to move to the UK ahead of their exit events, drawn by the new foreign income and gains (FIG) regime. This shift could position London as a leading hub for exit planning.

Starting April 6, 2025, individuals moving to the UK can claim the FIG regime if they haven’t been UK residents in the past 10 years. For young entrepreneurs who studied in London, eligibility simply requires confirming they meet the criteria. Qualifying individuals will enjoy a four-year exemption from UK tax on most income and gains during their initial stay.

Unlike the current remittance basis regime, which defers UK tax until funds are brought into the country, the FIG regime offers a permanent exemption. This means no UK tax when the income or gains arise and no tax if those funds are later transferred to the UK.

With these favorable conditions, London may well become the next global hotspot for entrepreneurs seeking to optimize their financial strategies during key exit events.

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