The figures from 2016/17 show an increase of £130m on the previous year and represent the highest total since the data was first collected in 2007/08.

HMRC’s data shows there were an estimated 91,100 individuals claiming non-domiciled taxpayer status in the UK via their self assessment tax returns, down from around 120,000 in previous years.

The tax authority says it traced the taxpayers who stopped claiming non-dom status, and found they split into two broadly equal groups:  taxpayers switching their status from non-domiciled taxpayer to domiciled taxpayer and continuing to pay tax in the UK, and  non-domiciled taxpayers who contributed very little tax in 2015/16, who left the UK tax system in 2016/17.

HMRC says this can be evidenced by the number of non-UK resident non-domiciled taxpayers having decreased from 33,600 in 2015/16 to 14,300 in 2016/17.

Rachel de Souza, tax partner at RSM, said: ‘There is a general perception that there are huge numbers of non-doms living in the UK who do not pay their fair share of tax, however the statistics show that this is simply not true.

‘The tax paid by the remaining non-doms is at a record high at over £9bn, which works out an average of £100,000 in tax per non-dom. And there are only 4,300 people who are medium to longer term residents claiming non-dom tax status with significant wealth outside the UK – a mere drop in the ocean when our population stands at 66m.’

Souza argues that given the government’s pledge to raise more tax, there is a case for encouraging more wealthy non-doms to move to the UK.

‘With a number of our European neighbours openly encouraging the wealthy to relocate with their own versions of the non-dom regime; it would be helpful for the UK to make a real case to encourage those that are here to remain, as well as encouraging new recruits to our own non-dom system,’ she said.

Statistics on non-domiciled taxpayers in the UK 2007-08 to 2016-17 are here.

Report by Pat Sweet