UK Government to Soften Tax Changes for Non-Doms
Facing concerns over wealthy individuals leaving the UK, the government is softening its proposed tax changes for non-domiciled residents. Chancellor Rachel Reeves announced an amendment to the Finance Bill, expanding the temporary repatriation facility for non-doms to transfer funds without incurring significant tax liabilities.
However, tax advisors warn the changes may be insufficient. They urge the government to address broader issues like inheritance tax exemptions and proposed changes to agricultural and business property relief.
Data suggests the UK's stance has already led to a mass migration of millionaires, with a net loss of 10,800 in 2024. This exodus includes some of Britain's wealthiest individuals, with 78 centi-millionaires and 12 billionaires relocating.
Critics argue the government's U-turn may be too late. They believe the damage is done, with wealthy individuals losing confidence in the UK's tax regime and seeking stability elsewhere.