Non-Dom Status in the UK Under Threat in 2024
Back to News

News feed Date: 29 February, 2024

Non-Dom Status in the UK Under Threat in 2024

Non-Dom Status in the UK Under Threat in 2024

What will happen to those with non-dom status in the UK? Both Labour, the party tipped to return to power, and the Tories, who form the incumbent government, look set to ditch or reduce this tax benefit for the non-domiciled in the United Kingdom. In this Latitude article, we provide you with all the pertinent details of this breaking news story.

What Does Non-Dom Status in the UK Mean?

The Cambridge Dictionary defines non-dom as “someone who is living in a country in which they are not domiciled (= it is not their legal home), especially when this means that they pay less tax.”

Non-doms avoid paying UK tax on foreign capital gains or income. They do so by paying an annual charge of either £30,000 if they’ve been here for at least 7 of the previous 9 tax years or £60,000 if they’ve resided in the UK for at least 12 of the previous 14 tax years.

Are Non-Doms an Endangered Species?

We’ve already told you about what Labour’s tax plans will mean for non-doms. Yes, their extinction. And now the Tories don’t seem like they want to protect them either.

The UK’s spring budget will be announced on Wednesday, March 6, 2024. Although we won’t know what’s in it until the big reveal by Chancellor Jeremy Hunt, there have been some hints of what is to come. Specifically, the scrapping of non-dom tax benefits to raise a forecasted £3.6 billion a year.

This is a U-turn by Hunt who had previously scotched rumours of the “End is Nigh for the UK Non-Dom” variety. Some see his reversal as a Machiavellian attempt to seize on the popularity of a planned opposition move. Whatever his motivation, it’s bad news for those with non-dom status in the UK.

The RIF Trust Take on the Non-Dom Issue

“Every day, I talk to more and more concerned wealthy UK residents,” says our UK Branch Manager, Dom Barnes. “I expect our enquiry traffic to increase following Jeremy Hunt’s attempt to steal the opposition’s thunder.”

“This is the worst possible news as Labour had dialled down on their proposals. They planned to bring in a four-year grace period to cushion the impact of their decision. This would still have brought in an extra £2 billion a year.”

“Thankfully, we have a number of other Residency and Citizenship by Investment solutions to ease the worries of current UK non-doms. For example, we helped devise a tax residency in Anguilla and we have an office in Malta that facilitates various immigration routes.”

Find out what’s in store for non-doms in the UK.

Your Next Move?

You could slowly watch your non-dom status in the UK slip away. Or you can seize the moment and take back control of your life by finding an alternative Residency or Citizenship by Investment Programme to suit your needs. So, don’t delay and contact RIF Trust today.

Non-Dom Status in the UK Under Threat in 2024

Date: 29 February, 2024

Posted in: News feed