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Rachel Reeves considers changes to non-dom inheritance tax amid UK ‘exodus’
- Chancellor Rachel Reeves is considering reversing her 40% inheritance tax on non-domiciled individuals' global assets amid reports of a wealthy exodus from the UK.
- The tax changes, replacing the non-dom regime with a residency-based tax from April, prompted a record loss of nearly 11,000 millionaires and caused financial outflows before HMRC data is fully available.
- The retroactive application of taxing pre-UK earnings and global assets led to significant departures of high-net-worth individuals and firms moving operations abroad, intensifying pressure on Reeves.
- Economic experts warn that if 25% of non-doms leave, the Treasury gains nothing from the scrapped status, while estate agents note steep home price discounts in London's prime areas, signaling economic impact.
- Reeves faces political challenges balancing competitiveness with revenue, as officials vow to tweak rules to retain wealth, while some warn any U-turn could provoke political anxiety amid major welfare cuts.
23 Articles
23 Articles
How Labour became trapped on tax
Back in November, Rachel Reeves was clear. Mindful of business criticism regarding her Budget, she told the CBI conference that “public services now need to live within their means” and that “I’m not coming back with more borrowing or more taxes”. Even at the time that looked to many in Labour like a hostage to fortune. Donald Trump had been elected president just three weeks earlier, demanding higher defence spending and threatening tariffs. Th…
The Independent
The Independent (US)Reeves considers U-turn on non-dom crackdown to halt exodus of wealthy
Chancellor could look to stem the flow of wealthy taxpayers leaving UK after Britain experienced its most significant drop in billionaires ever last year
THE LETTER OF LONDON. Every day, millionaires leave the island country. The cause: the end of the status of "non-dom" and a harder tax.
Rachel Reeves’s non-dom crackdown has truly backfired
Rachel Reeves may finally have seen sense. A report in this morning’s Financial Times suggests she is ‘exploring’ performing a 180 on the changes to inheritance tax rules which meant non doms would have to pay the death tax on their global assets – even on wealth earned before they came to the UK. As I explained in
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