British Chancellor of the Exchequer Rachel Reeves is considering tax changes to make the UK more appealing to high earners living in Gulf states unsettled by the Iran war.
Reeves will use this week’s International Monetary Fund (IMF) meetings to pitch the UK as “open for business”, Reuters reported, citing a Treasury official.
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The move comes amid criticism that recent tax rises could drive wealthy individuals away.
In that context, the government plans to open a consultation on the way limited liability companies (LLCs) are taxed.
The Treasury official was quoted by the news agency as saying: “The Treasury will consult on options across the tax system to keep the UK’s offer fair and competitive – including targeted reliefs for new arrivals and reforms to the treatment of offshore structure.”
Reeves is also expected to use her trip to Washington, DC to present Britain as a “safe-harbour economy”, the official added, pointing to an agenda that combines tight control of public finances with investment in skills, infrastructure and new industries.
Her pitch comes as the UK’s growth outlook has weakened.
In its latest forecasts, the IMF cut its projection for Britain’s economic expansion in 2026 to 0.8% due to the country’s heavy exposure to the inflationary effects of the Iran war.
It is said to be the largest downgrade among major advanced economies.
Last month, the Chartered Institute of Management Accountants said the UK Government’s Spring Forecast fell short on rebuilding business confidence against the backdrop of increasing energy prices.
