Domicil: Taxation
The question
To ask the Chancellor of the Exchequer, what recent estimate she has made of the number of people with non-domiciled tax status who permanently left the UK in each month of 2024.
Answered by James Murray
The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth. The non-dom reforms 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 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.
There have always been relatively large flows of non-doms in and out of the UK every year. For example. in the latest HMRC statistics for tax year 2022/23, 8,000 non-doms left and 13,000 arrived.
We anticipate that some non-doms ineligible for the new regime will exit the UK in response to the changes. Taking this migration response into account, the OBR expects the non-dom reforms to raise £33.8 billion over the next five years to help fund the public services and investment projects needed to drive growth.
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