First announced by the Conservative government, Labour has now ramped up the scope of the proposed reforms, pulling in global inheritance tax liability with a 10-year reach even after departing the UK.
A newly established group, Foreign Investors for Britain (FIFG) commissioned Oxford Economics to assess the impact of the changes, due to come in from April 2025.
The immediate impact of the rule change will be the flight of up to a third of non-doms within two years of the abolition. This figure rose further when accountants and financial advisers were asked about their clients’ plans, with indications that around 60% of clients were looking to leave the UK.
According to the Oxford Economics report, the average UK income and gains of the 68,800 non-doms in the UK is £21m a year. However, HMRC data suggests the average UK income of non-domiciled residents is only £370,000 per year.
