The UK Exit Tax: What It Means for Founders and Why Timing Now Matters

The UK’s latest Budget has sent clear signals that a potential “exit tax” on people leaving the UK is on the horizon.

Chancellor Rachel Reeves has confirmed that the Treasury is actively exploring a 20% tax on unrealised gains for individuals who emigrate, meaning if you own shares, a company, or significant assets, the UK could soon tax you as if you’d sold them before you leave.

Put simply: if you’re planning to move abroad or restructure your business, the window to act may be closing.

What’s Changing and Why It Matters

In her recent comments, Reeves suggested the UK must “crystallise gains” when high-net-worth individuals or business owners leave the country.

This could see departing residents face a “settling-up charge” of around 20% on their business assets, even if no sale has taken place.

The policy is being reviewed as part of the November Budget to raise revenue from those who “have the broadest shoulders.”
For entrepreneurs, this means that moving or restructuring your company could soon come with a significant tax bill unless you plan ahead.

And even if this specific measure is not introduced in this Budget, all indicators suggest that some form of exit taxation is inevitable in the near future.

What This Means for UK Founders

If you own a UK business, hold shares, or plan to move internationally, you could fall under this potential “exit event.”
The tax would apply when your residency changes, when you officially stop being a UK tax resident, meaning timing and structure are everything.

At Strive Consultants, we see two clear paths for entrepreneurs to protect themselves and plan effectively:

1. For Those Planning to Move in the Short Term (Next 12 Months)

If relocation is already on your radar, now is the time to act.

By starting your move and establishing residency abroad (for example, in Dubai or another zero-income-tax jurisdiction), you can reset your tax residence before any exit tax rules come into effect.

This includes:

• Applying for residency and setting up your new company structure.
• Aligning your business operations and ownership with your new jurisdiction.
• Reducing exposure to potential UK tax crystallisation or “settling-up” charges.

Once you’ve moved and your tax status is clear, your future profits, dividends, and capital gains can be legally structured under a 0% income tax environment, giving you control and predictability.

2. For Those Planning to Move in the Next 3-5 Years

If relocation is part of your longer-term plan, asset protection starts now.

The smartest move is to set up a UAE holding company to hold your UK and international assets.

This structure can:

• Protect your assets from future tax crystallisation.
• Simplify dividend distribution and group ownership.
• Provide flexibility if you later decide to relocate.
• Create a clear pathway to UAE residency when you decide to move in future years.

In short, build the structure before you need it. Once an exit tax becomes law, retroactive restructuring could be limited or heavily penalised.

Why the UAE Stands Out

Dubai remains one of the most attractive destinations for UK founders looking to optimise tax and lifestyle.

• 0% personal income tax
• A fast-growing global business hub
• Access to world-class infrastructure and banking
• Strategic location connecting Europe, Asia, and Africa

At Strive Consultants, we help UK entrepreneurs relocate their businesses, establish UAE companies or holding structures, and secure residency with full compliance.

Final Thoughts

If you’re considering a move abroad, this proposed UK exit tax is a signal — not of panic, but of urgency and preparation.

• Those planning to relocate soon should begin today to establish residency and structure correctly.
• Those thinking 3–5 years ahead should build their holding company now to protect assets and secure an easier route to UAE residency when the time comes.

Even if it’s not implemented in this Budget, it appears increasingly likely that some form of exit taxation will be introduced in the coming years.
The advantage lies with those who plan and act early.

Plan Now, While You Still Have Options

At Strive Consultants, we specialise in helping UK founders build future-ready business structures in Dubai and beyond.
If you’d like to explore your options or understand how the UK’s exit tax could impact your company, book a confidential consultation with our advisory team today.