When the UK government set out its plan to slash net migration numbers after it reached a record 745,000 last year, politicians were probably not expecting to be accused of creating a "tax on love".
However, after the salary a British citizen needs to earn to bring a spouse to the country was more than doubled, it led one academic to suggest people should be careful who they fall in love with, and the Archbishop of Canterbury to say it will have a negative impact on families.
The change is part of a package of measures aimed at cutting net migration to 300,000.
The minimum income for a UK citizen before they can apply for an overseas spouse to join them has been increased from £18,600 to £38,700 ($23,295 to $48,468) . The average UK salary is currently about £29,000.
The measures, unveiled by Home Secretary James Cleverly in the House of Commons, include care-home workers who come to the UK being prevented from bringing dependants to the UK.
There will also be a significant increase in the minimum salary requirement for a skilled worker from overseas – up to about £38,000 from £26,200 – although health and social care workers will be exempt.
The annual immigration health surcharge will be raised 66 per cent from £624 to £1,035 to raise, on average, about £1.3 billion for UK health services every year.
But after the policy details were pored over, leading to warnings the care system will crash, it is the decision to raise the family income threshold that has raised eyebrows among experts, with reactions ranging from surprise to shock.
'We're no burden'
Omnia’s husband is a banker in Egypt and on paper should be the type of person the UK would welcome with open arms, but for now it’s only on video calls that the pair and their son can speak.
The 33-year-old PhD student at a UK university, who is also a British citizen, is currently waiting on the outcome of the couple’s application for a visa to allow him to come to the UK.
It has been a stressful and expensive process – they have already paid out £4,000 in fees – with no guarantee the application will be successful so the family can once again live under one roof.
Meeting the current income threshold on Omnia’s student income was stressful enough, and she is concerned about what happens when they have to reapply.
“I’m not sure if we’re going to get the visa,” the 33-year-old, who asked that her real name not be revealed, told The National.
“It’s already stressful, before they brought in the increase. To earn that kind of money, the £38,000 minimum, that is not going to be easy.”
In the meantime, Omnia is separated from her husband, who she says as someone with a successful career will not be a burden to the UK.
“Whoever gets the spouse visa isn’t eligible for public funds anyway, so he can’t stay at home chilling out,” she said.
“He’s an entrepreneur and good at what he does, so I think he would do a great job here.”
Looking after her son is also hard work and he naturally misses being away from his father.
“I can’t tell you how hard it is being a full-time student with my son. I have to be at university four days a week and he’s not yet eligible for the nursery.
“My mum is British and she’s here so helps with my son, making things easier, but he’s a little boy who misses his father. They speak two or three times a day and even play together, but it’s hard for a child.”
Stressful and expensive
Estimates of the effect on the overall number of migrants is in the thousands and those coming to the UK on spouse visas are not allowed to claim state benefits, but the political fall-out could be substantial.
Alan Manning, from the London School of Economics, said he was "shocked' by the announcement and described the UK’s recent migration policy as “wild swings from boom to bust”.
The new rules mean "the vast majority of workers will no longer be eligible to marry a foreign spouse”, he told The National.
“That is a very dramatic change but one that will not make much difference to overall net migration statistics because the number of family visas issued to partners in the year to September 2023 was 65,000 compared to 335,00 work visas and 486,00 study visas,” he said.
Prof Manning, an economist whose expertise includes immigration and labour markets, said industry and education have “well-organised lobbies” able to argue for allowing migrants to study or work in the UK, whereas no such bodies exist for families.
“So we end up with a very restrictive policy that can have dramatic effects on individual families even as the numbers affected remain low,” he said.
He said that under the rules extended families can pool resources to establish eligibility, so while requirement is likely to rise, there may still be ways for some families to become eligible this way.
“But, for others, the impact of this change is likely to be draconian – be very careful who you fall in love with,” he said.
Negative impact
The Archbishop of Canterbury said the government is “rightly concerned” with bringing down legal migration figures, but warned on Friday that the new visa rules will have a “negative impact” on marriage and family relationships.
The archbishop told the House of Lords: “Does it enable the bonds of love within the family and the household to flourish? Does it support and strengthen relationships?
“There is a cost to be paid in terms of the negative impact this will have on married and family relationships for those who live and work and contribute to our life together.”
He went on to say: “The state is useful to the family, the family is indispensable to the state. A lack of strong families undermines our whole society."
His comments came during the annual debate he leads in the House of Lords, with this year’s topic “Love Matters”, the Report of the Archbishops’ Commission on Families and Households.
Dr Madeleine Sumption, director of the Migration Observatory at the University of Oxford, said the decision to raise the family was “one of the parts of the package announced that could have the most significant impact on individuals”.
“Family migration makes up a small share of the total, but those who are affected by it can be affected very significantly,” she said.
“The largest impacts will fall on lower-income British citizens, and particularly women and younger people who tend to earn lower wages. The income threshold will also affect people more if they live outside London and the South-East, in areas of the country where earnings are lower.”
Tax on love
Seb Wallace, a member of the Conservative Party's Tory Reform Group, on the liberal wing of the party, and a venture capitalist, has documented the travails his Colombian lawyer wife went through to come to the UK to live with him. He wants the whole system of spouse visas scrapped.
"The new visa requirements are simply a tax on love," he told The National.
"A citizen should not be restricted from living with their romantic partner based on a financial threshold, let alone one that is a distance above the UK average salary.
"This change is an injustice for the young and the poor. Even before this change, there was no recourse to public funds under this visa route, so it is unclear what state benefit this change was intended to have, other than a political headline.
"This change causes a clear social injustice with no tangible state social or financial benefit."
Gavin Barwell, who was once chief of staff to former prime minister Theresa May, also condemned the move.
“It is both morally wrong and unconservative to say that only the wealthiest can fall in love, marry someone and then bring them to the UK,” he wrote on X, the social media platform formerly known as Twitter.
But MP Neil O’Brien, until recently a government minister, said the figure of £38,700 was a fair one given the median income for a couple with no children is £38,626.
“We've had the principle that family migrants pay their own way for over a decade. Nearly half of working age people get more in benefits than taxes,” he said.
“I think the new threshold set near the average is reasonable. Other countries have stricter rules.”
The Home Office has said new policies will not be applied retrospectively and until the immigration rules are amended the minimum income requirement will remain the same.
It is currently in the process of finalising the specifics of the policy, including how it will apply to those renewing visas, and says it will confirm more details in due course.
In the meantime, those people falling in love abroad may need to consider the visa rules before their relationship goes any further.
MATCH INFO
Euro 2020 qualifier
Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)
TV: Match is shown on BeIN Sports
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Zayed Sustainability Prize
Look north
BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
More from Neighbourhood Watch:
Bundesliga fixtures
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)