Consultation opens on change to corporate re-domicilation rules

Proposed reforms aim to make it simpler and less expensive for overseas companies to move to the UK, in bid to aid economic growth. 

Today, the UK government shared proposals to change the law to create a corporate re-domiciliation regime, with the aim of making it simpler and cheaper for overseas companies to move their place of incorporation to here.  

Photo by Daniel Andrews / Unsplash

Under the current rules, a foreign company wishing to relocate to the UK must wind up its existing entity and establish a new one. That can be costly and complex, and in some cases entirely impractical. The hope is that the proposed new system will remove what are significant barriers to investment, given that the UK is a leading destination for international business. 

The government says that the proposed changes would also align with how things are done in countries such as Australia, Hong Kong and Singapore, as well as several US states. The hope is that the changes will also generate increased demand for the UK’s highly prized professional services sector, which is already worth £300bn annually and supports one-seventh of all jobs in the country. Indeed, the UK is the world’s second-largest exporter of services, after the US. 

Indeed, the services sector is central to the government’s modern industrial strategy, as a means of unlocking growth and creating jobs.   

The consultation is open from today, March 25, to June 19, 2026. For details, see Open for business: implementing a UK corporate re-domiciliation regime at GOV.UK. 

Blair McDougall MP, Parliamentary Under-Secretary of State (Minister for Small Business and Economic Transformation), says: ‘This is a clear signal that the UK is open for business. For too long, the complexity and cost of moving to the UK has been a barrier for companies wanting to be here. The proposed new regime will make it easier for world-class businesses to choose the UK, benefit from our outstanding regulatory environment and trade relationships, and contribute to the thriving economy we are building.’