The UK government has announced revisions to its planned reforms of the non-domiciled (non-dom)<\/strong> tax status, following analysis that linked stricter policies to a significant outflow of millionaires from the country. The decision signals a shift in balancing tax fairness<\/strong> with economic competitiveness as the UK seeks to retain wealthy residents and encourage foreign investment.<\/p>\n\n\n\n
At the World Economic Forum in Davos, Chancellor Rachel Reeves<\/strong> revealed plans to expand a key measure, the temporary repatriation facility, which allows non-doms<\/strong> to bring overseas income into the UK at a reduced tax rate. The move follows criticisms that the original proposals risked further damaging the UK\u2019s appeal to high-net-worth individuals.<\/p>\n\n\n\n
The government’s approach to reforming non-dom taxation <\/a>comes after alarming data revealed the UK lost over 10,000<\/strong> millionaires in 2024, a 157%<\/strong> rise compared to the previous year. Research conducted by New World Wealth and investment consultancy Henley & Partners <\/a><\/strong>positioned the UK as the second-largest net loser <\/strong>of millionaires globally, after China. Analysts attributed this exodus to Brexit, concerns over economic instability<\/strong>, and dissatisfaction with tax policies.<\/p>\n\n\n\n
The revisions come as Labour<\/a>\u2019s stance on non-dom taxation faces scrutiny <\/strong>from multiple sides. Critics within the Green Party<\/strong> argue that prioritising tax breaks for the wealthy reflects misplaced priorities, particularly as the government maintains cuts to vital programmes<\/strong> such as winter fuel payments<\/strong>. Meanwhile, the Conservative Party has accused Labour of policy inconsistency, claiming these amendments <\/strong>undermine its election promises.<\/p>\n\n\n\n