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UK announces increase in Immigration Health Surcharge expected to go into effect on 16 January 2024
The UK Parliament recently published the Immigration (Health Charge) (Amendment) Order 2023 (“Amended Order”), which provides recommendations for the new Immigration Health Surcharge (IHS) rates, subject to parliamentary approval. If the order is approved, a Skilled Worker Visa applicant who transfers to the UK on assignment for three years will be required to pay GBP 3105 (up from GBP 1872 currently) in IHS fees. These new rates will come into force on 16 January 2024 or the 21st day after the order is approved. The Amended Order adds that certain National Health Services (NHS) workers and their dependents will continue to be exempt from the IHS.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.