British, American Chambers Address Changes to Personal Taxation

On Tuesday 11 November 2025, the British Chamber of Commerce (BCC) and the American Chamber of Commerce (AMCHAM) held a joint event on Personal Taxation at the Hotel Parc Belair in Luxembourg-Merl.

Around 50 members of both chambers attended the luncheon event which was opened by Jonathan Norman, Head of the BCC Tax Committee: he mentioned that this event has now been held for 24 consecutive years, with the last six years' events being held in conjunction with AMCHAM. He added that the British Chamber's upcoming Christmas lunch is on 12 December.

Guest speaker was Laura Foulds, Managing Director of Analie Tax & Consulting, who has over 20 years of experience working in expatriate personal taxation, initially with the "Big Four" in the UK, the US and Luxembourg and, since 2013, with her own company in Luxembourg, providing advice on specific personal tax areas and cross border personal tax considerations to employers and employees and helps individuals optimise their tax position. She has delivered an annual presentation to both chambers; for the 2024 event recap, see https://www.chronicle.lu/category/american-chamber-amcham/52259-british-american-chambers-address-personal-tax-changes

The annual event was organised to offer attendees an opportunity to (a) be updated on changes in Luxembourg personal tax during 2025 and expected changes for 2026; (b) be briefed on important items to ensure individuals can best optimise their situation before the end of the year; (c) receive practical guidance on how the changes effective 1 January 2025 have impacted taxpayers; and (d) obtain feedback on commonly asked questions around filing Luxembourg taxes.

Laura Foulds opened by reviewing what happened in 2025, including by moving the tax scale as well as changes for those on low income. She addressed the simplification of the Inpatriate Regime (needs to be done in collaboration with one's employer), and boots to encourage people to invest in real estate.

She reminded everyone that 31 December 2025 is the deadline to file one's 2024 tax return. She presented a list of common deductions / credits, including mortgage interest, debit interest and insurance, personal pensions, home savings schemes, childcare and housekeeping, single parent tax credit and alimony, etc.

She added that CCSS is now accessible online (since a couple of weeks ago) via myGuichet for employers, with self-employed to also be included later. The draft bill related to a tax deduction incentive for people not to retire early; she also highlighted the increase in the annual contribution from €3,200 to €4,500 regarding personal pensions, as well as carried interest.

On UK pension income, she addressed the changes to the UK-Luxembourg non-double taxation treaty, where the main change is that the tax is now applied in the country where it is paid, with an exemption that people can elect to have it treated as before (taxed in country of receipt) - unfortunately there is currently no guidance on how this can be applied, apart from the deadline being 21 November 2026.

Looking ahead to 2028, individual taxation for all will come into force, with a 20-year transition period foreseen for Class 2 taxation.

Regarding appeals, she explained how this works using a real-life example. After filing one's tax return, one then receives an assessment, with one month to pay and three months to appeal. Responses can take five or more years, with going to court the next option. She explained that in her experience most appeals are cleared up at local tax offices.

One specific issue she highlighted was concerning rental income: she explained that short-term rentals on vacation properties (e.g. via AirBnB) is classified as commercial income, not rental income. She talked about how such properties are classified when vacant: she said that the tax office considers any day when such a property is not occupied is classified as being for personal use.

UK taxes are expected to rise soon, in the upcoming budget, with changes expected to income tax, capital gains tax and more.

Regarding the US, she talked about the Government Shutdown (just released), the Big Beautiful Bill Act, highlighting red flags for US nationals overseas, including +10% ownership of foreign companies and other issues.

The event continued with a brief session of questions from the audience, with a three-course lunch then served.

Paul Schonenberg, AMCHAM Chairman, concluded by thanking the speaker and reflected on the positive AMCHAM - BCC collaboration on this topic.

ED