Rachel Reeves to soften changes to non-dom tax regime after hearing ‘concerns’
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Chancellor says she will tweak finance bill amid effort to attract business leaders and entrepreneurs to UK. Rachel Reeves has said she will amend the finance bill to soften planned changes to the tax regime for “the non-dom community” after intense lobbying from wealthy UK residents.
In the latest evidence of the government’s determination to roll out the red carpet for businesses and investors in an effort to kickstart growth, the chancellor said she would tweak tax arrangements announced in her October budget for those claiming non-domiciled status.
The current regime allows these non-doms – usually a wealthy individual whose father was born overseas – to avoid paying tax on their overseas earnings in the UK in exchange for fees. Reeves is replacing this with a shorter residence-based regime from April.
“We have been listening to the concerns that have been raised by the non-dom community,” the chancellor told the Wall Street Journal editor-in-chief, Emma Tucker, at a fringe event at the World Economic Forum meeting in Davos, in comments first reported by the Times.
It is understood that the changes relate to the temporary repatriation facility, which allows those registered to bring money into the UK. A Treasury source said: “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.”.
