High-tax Britain loses 1,200 non-doms
The number of wealthy non-dom taxpayers in the UK fell by 1,200 last year as concerns grow that Labour's tax policies may drive more high-net-worth individuals offshore. HMRC data shows a net reduction from both departures and arrivals, with fewer new non-doms coming to Britain compared to previous years. Despite this decline, total taxes paid by non-dom taxpayers increased significantly due to higher income and capital gains contributions. Non-dom status has been gradually phased out since the Conservative government under Rishi Sunak made it harder to obtain, while Labour's Rachel Reeves abolished it entirely in 2025. The new Foreign Income and Gains system allows newcomers four years of tax relief on foreign earnings before full UK taxation applies. Experts warn that without a competitive tax regime, Britain risks losing more wealth creators. Industry leaders have expressed concern over the long-term impact of these changes, noting that while some entrepreneurs may benefit from short-term tax breaks, many are unlikely to settle permanently in the UK.
Topics: HMRC data non-doms tax policy wealth migration