Chancellor Rachel Reeves Changes Her Mind on Non Doms Taxation

24th January 2025

Chancellor Rachel Reeves has announced plans to amend her Budget proposals regarding non-domiciled residents (non-doms) after receiving feedback from the community. Initially, she had pledged to abolish the current tax system. This allows foreign nationals living in the UK to pay tax only on their UK income, not their global income, after four years. However, after listening to concerns, she plans to table an amendment to the Finance Bill to make the tax regime more attractive to talented entrepreneurs and business leaders.

Reeves mentioned that the amendment would likely increase the amount of money wealthy foreigners can bring into the UK without facing substantial tax bills.

This move comes in response to reports that one millionaire has left the UK every 45 minutes since the Labour Government took power. According to Global analytics firm New World Wealth, Britain lost a net 10,800 millionaires in 2024, which the Adam Smith Institute calculated as costing the Treasury the equivalent income tax take of over half a million average taxpayers