The Spring Statement should include measures to attract foreign direct investment from France

The Spring Statement in March should include measures to encourage individuals and businesses from France to come to the UK and invest, say leading audit, tax and business advisory firm, Blick Rothenberg.

Vanesha Kistoo, Head of French Desk at the firm said: “The tax changes in France’s 2025 Budget present an opportunity for the UK Government to attract French Foreign Direct Investment (FDI) to the UK.

“France has reduced R&D tax breaks and increased taxes on large companies, meaning French businesses will at some point be looking to move their operations elsewhere.

“A more generous R&D tax relief scheme as part of the Spring Statement announcement would bring them to the UK to invest.

“France’s 2025 Budget changes also include higher taxes for wealthy individuals which has been presented as a temporary increase, but history shows this is likely to be a long-term measure, especially given the level of deficit.”

She added, “For individuals looking to escape higher taxes in France, the new UK expat regime could be a good short-term solution, but for those who have substantial accumulated wealth, there is concern about the UK introducing an exit tax regime. But if the exit tax regime is not implemented the UK could attract considerable FDI from French individuals.

“The Chancellor, Rachel Reeves, has also spoken about making tax relief for foreign income and gains more ‘generous’, and she should take the Spring Statement as an opportunity to share details on how ‘generous’ those changes are. If they are truly ‘generous’ this would attract French high earners looking for a tax regime that is more advantageous for them than the one in France.