The number of new non-domiciled (non-dom) taxpayers in the UK has dropped 40% in 2020/21 from 14,200 to 8,500, according to analysis by law firm Pinsent Masons.
Sophie Warren, tax investigations expert at Pinsent Masons, said that while part of the fall in the number of new non-doms can be explained by the pandemic putting foreign nationals off moving to the UK, Brexit may also have deterred some non-doms from coming to the UK.
Data from HMRC showed that non-doms paid £7.9bn in taxes during 2020/21, Warren said. However, the amount of tax paid by non-doms fell by £2bn from £9.65bn in 2017 to £7.65bn in 2018, in the period following Brexit and non-dom tax reforms which made the UK’s non-dom regime less generous.
The total number of non-doms in the UK has fallen by 11% to 68,300 in the most recent year, down from 76,500 the previous year.
Warren says that if non-dom status was scrapped, it could have a significant impact on the UK economy and the tax revenues the country receives. ‘Many non-doms are highly successful entrepreneurs which have established or invested in UK companies,’ she said. ‘The availability of non-dom status gives the UK a competitive advantage in attracting talented and wealthy individuals. Altering this status now would cause many to consider relocating.’
The number of new non-domiciled (non-dom) taxpayers in the UK has dropped 40% in 2020/21 from 14,200 to 8,500, according to analysis by law firm Pinsent Masons.
Sophie Warren, tax investigations expert at Pinsent Masons, said that while part of the fall in the number of new non-doms can be explained by the pandemic putting foreign nationals off moving to the UK, Brexit may also have deterred some non-doms from coming to the UK.
Data from HMRC showed that non-doms paid £7.9bn in taxes during 2020/21, Warren said. However, the amount of tax paid by non-doms fell by £2bn from £9.65bn in 2017 to £7.65bn in 2018, in the period following Brexit and non-dom tax reforms which made the UK’s non-dom regime less generous.
The total number of non-doms in the UK has fallen by 11% to 68,300 in the most recent year, down from 76,500 the previous year.
Warren says that if non-dom status was scrapped, it could have a significant impact on the UK economy and the tax revenues the country receives. ‘Many non-doms are highly successful entrepreneurs which have established or invested in UK companies,’ she said. ‘The availability of non-dom status gives the UK a competitive advantage in attracting talented and wealthy individuals. Altering this status now would cause many to consider relocating.’
