Taxation: Domicil
The question
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential implications for her policies of the findings of the report entitled Impact of changes to the UK non-domiciled regime, published by the Centre for Economics and Business Research in April 2025.
Answered by Dan Tomlinson
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 2023/24, 9,500 non-doms left and 9,100 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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