The UK government is reportedly weighing new measures to tighten tax regulations for non-domiciled residents, a move that could significantly affect London's wealthy elite.
What Are Non-Doms?
Non-domiciled individuals, commonly referred to as 'non-doms', are UK residents whose permanent home for tax purposes is outside the country. This status allows them to avoid paying UK taxes on foreign income unless it's brought into Britain.
Potential Policy Changes
Sources suggest Chancellor Jeremy Hunt is considering several options:
- Reducing the number of years non-doms can claim the status
- Introducing new reporting requirements
- Closing certain tax loopholes
These changes could generate hundreds of millions in additional tax revenue for the Treasury.
Impact on London's Economy
London has long been a magnet for wealthy foreign nationals, with many attracted by the favourable non-dom rules. Experts warn that stricter regulations could:
- Reduce London's appeal to international investors
- Impact the luxury property market
- Affect employment in high-end service sectors
The Treasury has declined to comment on specific proposals, stating only that tax policy is kept under constant review.
