There were an estimated 121,300 non doms in 2014/15, up from 119,800 the previous year and this non dom population was made up of 85,400 UK-resident taxpayers and 35,800 non-UK resident. Together they paid £6.97bn in UK income tax, £252m in capital gains tax and £2.253m in national insurance contributions (NICs).

The 85,400 UK-residents alone paid a total of £6.53bn in UK income tax, £250m in capital gains tax and £2.22bn in NICs. Of these, there were 54,600 on the remittance basis of taxation in the UK that paid £4.99bn in UK income tax, £165m in capital gains tax and £1.73bn in NICs. The remaining 30,900 non-domiciled UK resident taxpayers were on the arising basis of taxation in the UK.

Of those paying the remittance basis charge in 2014-15, there were 1,300 who had been UK-resident for at least seven out of the last nine tax years and so paid the £30,000 charge. This group paid £380m in income tax, £19m in capital gains tax, £97m in national insurance contributions and £40m in remittance basis charge.

A further 3,700 individuals paying the remittance basis charge in 2014-15 had been UK-resident for at least 12 out of the last 14 tax years and so paid the £50,000 charge. They paid £1.02bn in income tax, £110m in capital gains tax, £207m in NICs and £186m in remittance basis charge.

London centric

By far the largest number of non doms are based in London (62,900) and they are responsible for paying some £5bn of UK income tax, plus £176m in capital gains tax and £1.6bn of NICs. Together non-doms in London and the South East contribute 86% (£7.9bn) of the £9.3bn in overall tax and NIC contributions.

HMRC calculates non dom taxpayers who are located in London exhibit the highest average sum total of taxes and NIC at over £105,000 paid. Second are those who are located in the North West at nearly £90,000, higher than the South East at around £75,000. The UK region where non doms pay the lowest average sum total of taxes and NIC is Northern Ireland.

The data also shows strong increases in non doms’ use of business investment relief, which reached a peak of £837m in 2014-15. As of 2014-15 the cumulative value of investments in UK businesses is £1.59bn.

The statistics are compiled from HMRC's self-assessment live system and represent the situation as at August 2017. The latest tax year for which stable information is available is 2014-15, and HMRC says the statistics will not reflect the position of individuals who are yet to submit a self-assessment form after the statutory deadline. As such, some statistics are likely to be revised in future publications especially for more recent years. \

Steven Porter, partner at law firm Pinsent Masons, said: ‘Non-dom taxpayers make a huge contribution to HM Treasury and the UK economy as a whole – far more than most people realise.

‘The total number of taxpayers claiming a non-dom status has marginally increased over the last year, although we will have to wait and see how Brexit affects this as the information released doesn’t yet cover the referendum.’

Pinsent Masons points out that the revenue from the remittance basis charge, or non-dom levy, has noticeably stalled at £226m, and is dwarfed by the £9.3bn in overall receipts.

Porter said: ‘The remittance basis charge was introduced to extract more tax from non-doms. However, non-doms will be keen to avoid being used as a cash-cow. The government must be careful not to drive them out.

‘The removal of long-term non-dom status earlier this year may have also blunted the attractiveness of the UK to wealthy individuals. Many are internationally mobile and can easily relocate.’

HMRC’s Statistics on Non-domiciled Taxpayers in the UK is here

Report by Pat Sweet