Labour revealed plans to scrap the non-dom regime in April 2022.
In March 2024, the-then Conservative chancellor Jeremy Hunt announced that the non-dom tax regime would be phased out.
Under Mr Hunt’s plans, people who moved to the UK from April 2025 would not have to pay tax on money they earned overseas for the first four years.
After that period, if they continued to live in the UK, they would pay the same tax as everyone else.
Those people who currently have nom-dom status would be allowed a two-year transition period, during which they would be encouraged to bring their foreign wealth into the UK system.
The former chancellor said getting rid of the non-dom status would raise £2.7bn a year by 2028/29.
Labour has pledged to strengthen these planned reforms.
It said it would remove a 50% discount in the first year of the new rules and include foreign assets held in a trust within the UK inheritance tax framework.
The new Chancellor Rachel Reeves said Labour’s changes could raise £2.6bn over the course of the next Parliament.
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