Treasury considering £150k levy to replace non-dom status
The TelegraphDowning Street has been considering whether to copy an Italian scheme in which wealthy foreigners pay a €100,000 yearly fee to replace the non-dom status. Mr Zahawi told The Telegraph: “It will be fairer, it will raise more money and it will close the loopholes for people who should be paying tax here.” However, it could leave the Government open to criticism that the ultra-wealthy can still come to the UK long-term and pay minimal tax – something limited in Labour’s own proposal to scrap the status. Scrapping the non-dom status would help raise money for the tax cuts being planned and cause Labour a political problem, since £2 billion of spending is funded by that same move. It can also be revealed that a former chancellor said the Treasury’s own analysis has shown that scrapping or reducing the generosity of the non-dom tax status would not generate more income and risks hurting the economy.
History of this topic
Scrapping non-dom tax regime ‘will cost Britain £6.5bn’
The Telegraph
Chancellor could be willing to alter non-dom plans, report suggests
The Independent
Reeves softens plans for crackdown on non-doms
The Telegraph
Non-dom tax status abolished in Jeremy Hunt’s 2024 Budget
The Independent
Record tax haul from non-doms triggers fears of wealth creator exodus
The TelegraphDiscover Related
