Domicil: Taxation
The question
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of proposed changes to the non-domiciled tax regime on the number of non-domiciled people who will relocate to other European countries.
Answered by James Murray
The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth. The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair. The reforms establish a tax regime for new residents which is more attractive to new arrivals than the current rules.
The OBR have certified that the non-dom reforms the Government is legislating will raise £33.8bn in total revenue over the five-year forecast period. Evidence from the 2017 reforms shows that the vast majority of former non-doms who became liable for tax on their worldwide income and gains remained UK resident and continued to contribute to the UK economy.
The Government published a Tax Information and Impact Note for this policy on 30 October. This can be found here: https://www.gov.uk/government/publications/tax-changes-for-non-uk-domiciled-individuals/reforming-the-taxation-of-non-uk-domiciled-individuals.
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