UK Finance Minister Rachel Reeves speaks on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland, January 22, 2025.
Jerry Miller | CNBC
Britain will ease some planned changes to controversial non-Dom tax rules, the Treasury has confirmed, following fears of an exodus of billionaires.
Britain's 200-year-old non-dom system exempts people who live in the UK but are domiciled in another country for tax purposes from paying tax on their overseas income or capital gains income for up to 15 years. I admit that I do. The government has long been embroiled in controversy, with Britain's Chancellor of the Exchequer Rachel Reeves announcing in October's budget that inheritance tax would be abolished from April 2025, and that all long-term residents should be able to protect the world's It has been confirmed that the assets within are subject to inheritance tax. trust.
Mr Reeves, speaking at a side event to the World Economic Forum in Davos, said the government will soon introduce amendments to the Finance Bill to introduce rules that will allow non-kingdoms to bring money into the UK without paying significant taxes. He said it would increase generosity. .
When asked about the recent exodus of the ultra-wealthy, Reeves told The Wall Street Journal's Emma Tucker: “We have listened to the concerns raised by the non-Dom community.” Ta.
“In the Finance Bill, we will bring forward amendments to make the lump sum transfer regime more generous, allowing non-kingdoms to bring money into the UK without having to pay too much tax,” she said. added.
Reeves also sought to reassure wealthy overseas investors on Thursday that the changes will not affect double taxation agreements between Britain and other countries.
“There are concerns from countries that have double tax treaties with the UK, including India, that they will be caught paying inheritance tax, but that is not the case.We will change these double tax treaties. “I don't mean to,” she said.
In a statement to CNBC confirming the plans, a Treasury spokesperson said the adjustments would incentivize non-member countries to “bring money into the UK and encourage them to spend and invest this money in the UK”. He said it was aimed at
“While we do not expect these changes to have an impact on the £33.8bn of tax revenue that the OBR expects to raise over five years, we are confident that the reforms announced in the Budget will work as intended. “This reflects our continued engagement with stakeholders to ensure that the .
The government's crackdown on non-Doms in October was part of a broader package of measures aimed at the top, including imposing new taxes on private equity executives, private schools, second homes and private jets.
Critics warned at the time that the move would trigger a mass exodus of the ultra-rich, many of whom they said would become key contributors to the government's pro-investment policies.
An estimated 10,800 millionaires left the UK last year, an increase of 157% on 2023, according to the latest figures from global analytics firm New World Wealth and investment migration adviser Henley & Partners.
