Private Client Team Responds To Government’s Amendments

Irwin Mitchell’s Private Client Team has welcomed the government’s announcement today to amend the controversial changes to tax rules for non-domiciled residents, however said that more needs to be done to encourage high net worth individuals to remain in the UK.

The changes, announced today by Rachel Reeves, the UK’s Chancellor, aim to address the concerns raised by the non-dom community following the departure of nearly 11,000 of Britain’s wealthiest individuals last year.

Rachel Reeves, speaking at the World Economic Forum in Davos, revealed that the government would shortly table an amendment to the Finance Bill. The amendment will increase the temporary repatriation facility, allowing non-doms to bring money into the UK without incurring significant taxes. Additionally, Reeves reassured that the changes would not affect double-taxation agreements with countries such as India.

Expert Opinion

“It’s good to see that the government is listening to the concerns of the non-dom community. However, in my view, this is not enough. The primary reason for the exodus of wealthy individuals is the ten-year tail and the inheritance tax implications for non-dom taxpayers. While the increased temporary repatriation facility is a step in the right direction, more comprehensive measures are needed to address the root causes of this issue.” Helen Clark, a partner at Irwin Mitchell

The departure of 10,800 millionaires from the UK last year, a 157% increase from 2023, has ed to calls for a more attractive tax regime. The outflow, primarily to European countries such as Italy and Switzerland, as well as the United Arab Emirates, included 78 centi-millionaires and 12 billionaires.