UK Labour Party to abolish non-dom tax status, targeting high-net-worth individuals

What is non-dom tax status?

Non-domiciled, or non-dom, status is a tax status in the United Kingdom that allows individuals who are not considered domiciled in the UK to pay tax only on their UK income and gains. This means that they do not have to pay UK tax on their overseas income and gains, even if they are brought into the UK.

To qualify for non-dom status, an individual must meet certain criteria, such as having a permanent home outside of the UK and spending less than 183 days in the UK in a tax year.

Why is the Labour Party abolishing non-dom tax status?

The Labour Party has pledged to abolish non-dom status if it wins the next general election. The party argues that non-dom status is unfair, as it allows wealthy individuals to avoid paying tax on their overseas income and gains.

The Labour Party also argues that non-dom status is damaging to the UK economy, as it encourages wealthy individuals to invest their money overseas rather than in the UK.

What impact will the abolition of non-dom tax status have?

The abolition of non-dom tax status would have a significant impact on high-net-worth individuals who currently benefit from the status.

These individuals would be required to pay UK tax on their worldwide income and gains, which could result in a substantial increase in their tax liability.

The abolition of non-dom tax status could also lead to some wealthy individuals leaving the UK, which could have a negative impact on the UK economy.

Conclusion

The Labour Party's pledge to abolish non-dom tax status is a significant policy that would have a major impact on high-net-worth individuals in the UK.

The abolition of non-dom status would be a major change to the UK tax system, and it is likely to be controversial.