Current and former non-doms’ tax contributions in the UK rose 1.8 per cent to £12.5bn in 2023-24, even as the number of non-doms fell, according to official figures released on Thursday.
The number of current non-doms decreased from 74,100 to 73,700 in the tax year ending April 2024, and former non-doms now “deemed domiciled” in the UK for tax purposes also fell slightly. Conservative chancellor Jeremy Hunt announced plans to abolish the status in March that year.
The total tax figure includes income tax, capital gains tax and national insurance contributions from non-doms and former non-doms who were still in Britain.
An increase of £530mn in current and former non-doms’ income tax payments offset declines in capital gains tax and national insurance contributions from both groups.
Britain’s non-dom tax regime allowed UK residents who declared their permanent home as being overseas to avoid paying UK tax on foreign income and gains.
Alexandra Britton-Davis, partner at accountants Saffery, said the £12bn contribution “amounts to around £145,000 per individual, which is far higher than the average for all taxpayers”.
The figures predate Labour’s general election victory in July 2024. Chancellor Rachel Reeves confirmed the abolition of non-dom status in her first Budget in October 2024, which took effect this April.
Reeves’ policy on non-doms has been more aggressive than the plans announced by Hunt, with tax advisers warning it has contributed to an exodus of wealthy residents from Britain.
Those former non-doms who have decided to stay will see their worldwide assets potentially subject to UK inheritance tax at 40 per cent. The Financial Times reported last month that the government was exploring reversing the IHT element of the non-dom reforms, which came into force in April, to stem the flow of people leaving the UK.
Britain’s government should refrain from making further tax cuts given the long-term strains on the country’s public finances, the chief economist of the International Monetary Fund (IMF)
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