Is it Time to Move Overseas?
- Shaun Crozier
- Oct 13
- 3 min read
Many are quietly asking themselves is it time to move overseas or stay put!
Our economic backdrop is troubled, taxes at record highs and looking likely to rise further, and living costs continue to increase every month.
Relocating abroad, once mainly considered by the rich, is now increasingly becoming a rational option for professionals, business owners, and even more so for retirees who want to stretch their income further.
Our Economic and Debt Landscape
Public finances frame the challenge. Debt now exceeds 90% of the country's GDP. In June 2025, the government borrowed £20.7 billion, with most of it allocated to interest payments!
Analysts warn that this pattern builds a cycle where higher taxes fund debt, lower growth follows, and more borrowing becomes necessary.
Inflation projections raise further concern. The OECD expects the UK to record the highest inflation rate among the G7 countries in 2025, at around 3.5 percent. Growth forecasts remain weak, leaving households exposed to higher food and energy costs, while wages fail to keep pace.
The picture signals a government with little room to maneuver, other than pressing for greater tax revenue.
Our Taxes are High & Rising
Taxes already sit at a level not seen in decades. The Office for Budget Responsibility projects tax revenue at 37.7 percent of GDP by 2027–28, cementing a post-war record.
Income Tax Thresholds and Fiscal Drag
The personal allowance remains at £12,570, and tax bands remain frozen. Those between £12,571 and £50,270 face a 20 percent rate, while income up to £125,140 attracts rates of 40 percent and 45 percent.
The loss of personal allowance above £100,000 creates a hidden 60 percent marginal rate, a trap many only notice once the final bill arrives!
Inflation silently drags thousands into higher bands each year, boosting state coffers without raising rates on paper.
Indirect and Other Taxes
Indirect taxation adds more pressure. VAT at 20 percent lands on daily spending, National Insurance contributions eat into pay packets, tax on savings return (interest) and corporate and dividend taxes weigh on businesses and investors alike. The result is a squeeze on every side, regardless of how income is earned or spent.
Lower Tax, Lower Cost, Better Climate
Leaving the UK can reset the balance. Jurisdictions in Southern Europe, Asia, and the Middle East advertise regimes with lower or zero personal income tax.
Others offer incentives for new residents, ranging from flat tax deals to exemptions on foreign income.
These policies, combined with lower living costs, including housing and groceries, and warmer climates, improve the quality of life. For many professionals, relocation creates both financial freedom and a healthier lifestyle.
So Is It Time to Move Overseas, your Decision
Every conversation about relocation eventually shifts from numbers to priorities. The real test comes when households ask what they value most in their day-to-day lives.
Some discover that access to quality healthcare and education matters more than a lower tax bill. Others decide that cultural familiarity, professional networks, and proximity to family outweigh the attraction of sun-drenched living abroad.
Ultimately, moving overseas demands a willingness to reshape your life beyond the financial spreadsheet. It means deciding whether the UK’s rising tax environment supports or undermines the future a household wants.
The decision is less about escape and more about creating alignment between the lifestyle, security, and financial freedom you want to achieve.
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