Tax Yields: British Nationals Abroad
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of wealthy taxpayers leaving the UK on levels of (a) economic growth and (b) tax receipts.
Answered by James Murray
The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible.
As part of this, the Government is increasing the main rates of Capital Gains Tax (CGT) to 18 and 24 per cent, while ensuring the UK tax system remains internationally competitive.
At the Budget, the Government also confirmed its plans to remove the outdated concept of domicile status from the tax system and to replace it with a new residence-based regime from 6 April 2025, which is internationally competitive and focused on attracting the best talent and investment to the UK. The OBR have certified that the package of non-dom reforms the Government is legislating will raise £33.8bn in total revenue over the five-year forecast period. These reforms will ensure that everyone who makes their home in the UK pays their taxes here.
These and other decisions announced at the Budget will help repair the public finances and fund public services such as the NHS and education.
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