Fewer people claimed non-dom tax status in UK ahead of Government crackdown

The number of non-dom taxpayers in the UK dipped last year prior to the UK Government clamping down on the tax status, official figures show.

There were about 73,700 people claiming non-domiciled tax status in the year ending in April last year, according to estimates from HM Revenue & Customs (HMRC).

This was 400 fewer than the 2022-23 tax year, or a dip of about 0.5%.

The number of non-doms, according to self-assessment tax returns, stood 3,900 below that in the tax year ending 2020.

It indicates a slowdown in the number of people claiming the tax status following a post-pandemic resurgence.

Non-domiciled means UK residents whose permanent home, or their “domicile” for tax purposes, is outside the UK.

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Overseas

The regime meant that so-called non-doms paid tax in the UK only on income generated in the UK – meaning any income earned overseas was exempt from British taxation.

However, the Labour Government abolished the non-dom tax status in April following backlash that wealthy residents could enjoy the benefits of living in the UK without paying as much tax.

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Clampdown 

Previous chancellor Jeremy Hunt estimated that scrapping the regime would raise about £2.7 billion for the Treasury by 2028-29.

Recent data showed the UK saw the biggest fall in billionaires on record amid the Government non-dom clampdown.

The Sunday Times Rich List said there were fewer of the world’s “super rich” coming to live in Britain.

HMRC’s data published on Thursday showed that some £9 billion was raised from non-doms paying income tax, capital gains tax and national insurance last year.

This was a £107 million increase on the prior year, despite the dip in the number of individuals.