Autumn Budget Update: Government Monitoring the Impact of the FIG Regime

The government stated that, “supported by emerging evidence, it will continue to assess whether the new residence-based system is striking the right balance between international competitiveness, fairness and support for the public finances, and that it is prepared to take action where necessary.”

This acknowledgement will be welcome news for employers, internationally mobile employees and advisers who have raised concerns about the impact of the new rules on the UK’s attractiveness as a destination for global talent. It suggests that the government is listening to feedback and monitoring how the regime operates in practice. However, it is important to note that the government has not announced, promised or consulted on any changes to the FIG regime.

While a review remains possible, there is currently no indication of whether any amendments will be made, what form they might take, or when they could be introduced. As a result, employers and globally mobile employees should continue to plan UK assignments, relocations and recruitment decisions based on the rules as they currently stand, rather than anticipating future changes.

For an overview of the FIG regime and the practical considerations for employers and international assignees, see our previous article: Navigating the UK’s New FIG Regime: What Employers and International Assignees Need to Know