Well, well, well. It seems that Sir Keir Starmer’s Labour government is looking to row back on its non-dom rules after Britain suffered an exodus of millionaires after the introduction of the policy. Talk about a quick turnaround…
Speaking at a fringe event in Davos with the editor of the Wall Street Journal, Rachel Reeves announced the Labour government is planning to table an amendment to the Finance Bill. The Chancellor said that:
We have been listening to the concerns that have been raised by the non-dom community. The government amendment will increase the temporary repatriation facility, which enables non-doms to bring money instantly to the UK without paying significant taxes.
Trade Secretary Jonathan Reynolds backed up his colleague, remarking: ‘We welcome people coming to the UK and we’ll have a specific kind of tax treatment that they would expect.’ Similarly a Treasury insider told the Times: ‘We’re always interested in hearing ideas for making our tax regime more attractive to talented entrepreneurs and business leaders from around the world to help create jobs and wealth in the UK.’
The watering down announcement comes after figures revealed that the UK saw a net loss of 10,800 millionaires in 2024 – an increase of over 150 per cent on the previous year. The Adam Smith Institute suggests each of the millionaire moguls that left the country would have paid at least £390,000 in tax a year. Almost 80 millionaires deserted Britain last year, along with 12 billionaires, to countries like Italy and Switzerland – while financial advisers have warned that increasing numbers of British businesspeople are preparing to relocate after tax rises were announced in Labour’s Budget. Good heavens.
Will the Labour lot see the error of their ways on anything else? Watch this space…
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