Number of tax exile non-doms in UK falls to record low over 'Brexit and Corbyn fears'
2 min read
The number of tax exile non-doms in the UK has fallen to a record low amid fears of a Jeremy Corbyn government and uncertainty over Brexit.
The latest statistics from HMRC show there were 78,300 people living here who list their permanent home in another country for tax reasons, down 13% from the year before.
It means they pay no tax on their UK earnings, but not their offshore accounts.
A total of £7.5billion was raised from non-doms in 2017/18, down from £9.5billion the year before.
HMRC say this has not resulted in an overall fall in revenue to the Exchequer, as the shortfall has been made up by those “previously non-domiciled becoming domiciled” and paying all their tax in the UK.
But the taxman did concede that around 6,000 high net worth individuals, have left Britain altogether.
Josie Hills, senior tax manager with law firm Pinsent Masons, said: "Brexit uncertainty is driving out many of the wealthiest non-doms who are not prepared to hang around to find out the outcome.”
She also blamed Labour's plans to increase taxes on the well-off for the exodus.
Ms Hills said: “The prospect of a Labour government is also very unappealing for high net worths - talk of monetary controls and wealth taxes are not well received.
“Given that there could be a general election in the near future, many will not be willing to take the risk that this becomes a reality.”
More than half of all non-doms live in London, the figures show, and 76% of tax contributions from the group come from that region.
But Ms Hills said they are mostly “internationally mobile” and if they no longer see the UK as an attractive place “then they can easily relocate”.
She added: “Non-doms make a huge contribution to HM Treasury’s coffers; this small group has contributed £45billion in tax over the last five years.
“The impacts of falling tax receipts from non-doms may only be felt once it’s too late.”
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