France Eyes the UK: Spring Statement May Be the New Golden Goose
Big news from Blick Rothenberg – the UK’s upcoming Spring Statement could be the ticket that pulls French companies and high‑net‑worth individuals over the Channel. Vanesha Kistoo, head of the French Desk, paints a clear picture: France is tightening its belt, while the UK has an opening to broaden the purse.
Why French Businesses Might Pack Their Bags
- R&D tax slippage: France is cutting back on research‑and‑development tax credits – a sure sign that firms will seek cheaper, more tax‑friendly shores.
- Corporate tax hike: Bigger companies will face steeper rates, pushing them to relocate operations to lower‑taxed jurisdictions.
- Wealth tax windfall: High‑net‑worth citizens are staring at a bigger bite from the French tax pot—an incentive for them to find a smoother tax route.
The UK’s Sweet Spot
Imagine the UK as a glossy apartment with generous R&D tax relief and a friendly expat regime. For those looking to dodge the French cold taxes, this could be the “breezy summer escape” they’ve been craving.
Things to Watch in the Spring Statement
- Expanded R&D tax relief – Could be the carrot that lures French firms out of France.
- Revised foreign income & gains relief – The Chancellor, Rachel Reeves, hints at a “really generous” framework that might rival France’s offerings.
- Exit tax policy – The UK’s decision on a potential exit tax will determine if French high‑net‑worth individuals keep their wings on.
What Vantage Point Looks Like
Vanesha believes that if the UK stays banishing the exit tax and offering credible tax incentives, FDI from France will pour in like a steady stream. In short: more R&D tax relief and a knack for easing wealth taxes should win FDI hearts.
Stay tuned for the Spring Statement – it could be the moment the UK flips the switch and welcomes France’s business brains and affluent individuals with open arms.
