Non dom tax not the answer

Non-dom tax overhaul could backfire

The Government's proposed overhaul of the non-dom tax regime could lead to a loss of £1bn, according to research by Oxford Economics. The current system allows wealthy foreigners to avoid paying tax on overseas income for up to 15 years, but this will change in April 2025 to a residence-based regime with a four-year limit. The Office for Budget Responsibility initially estimated that scrapping the tax break could generate £3bn annually, but this is uncertain due to potential non-dom departures. Oxford Economics predicts a 32% drop in the non-dom population. In 2022-23, non-doms contributed £8.9bn in taxes.