The decision to cancel the abolition of the non-domiciled (non-dom) tax system has sparked concerns among financial experts, who warn of potentially disastrous consequences for the UK’s economy and investment landscape.
Mohammad Uz-Zaman, a chartered wealth manager and Founder of ADL Estate Planning, highlights the significant contributions made by 68,000 non-doms to the UK’s tax revenue, amounting to £8.5 billion in income, capital gains, and employment taxes. He cautions against the removal of non-dom remittance rules, arguing that it could have detrimental effects on the UK’s long-term economic growth and talent attraction efforts. Uz-Zaman emphasizes the importance of fostering an environment conducive to growth and attracting international talent in an increasingly competitive global landscape.
Adam Craggs, Partner, Tax Disputes at RPC, echoes similar concerns, describing the scrapping of the non-dom tax status as a major shift in the UK’s tax regime. He predicts a potential exodus of much-needed investment as affected individuals seek more favorable tax environments elsewhere. Craggs highlights the substantial tax contributions made by non-doms and stresses the need for affected taxpayers to carefully evaluate the implications of the Chancellor’s announcement and take appropriate measures to safeguard their financial interests.