UK Chancellor Rachel Reeves’ decision to remove tax exemptions for non-doms could lose the Exchequer £12.2bn over this parliament, according to new research from the Centre for Economics and Business Research (CEBR).
Commenting on the CEBR figures, Marc Acheson, Global Wealth Specialist at Utmost Wealth Solutions, said: "These figures are unfortunately not surprising. Following the measures announced in the Autumn Budget we have seen a significant flight of wealth and are seeing many non-doms consider international options with increasing regularity.
"Many would rather not leave, but feel they have no choice – not only because of the abolition of the remittance basis, but primarily due to the legislation that subjects assets held in trusts to inheritance tax (IHT) periodic and exit charges, and also exposes global estates to IHT for anyone who has been resident in the UK for 10 years.
"The non-dom regime’s replacement with the new four-year Foreign Income and Gains (FIG) regime is internationally uncompetitive and too short.
"The UK has now lost much of its appeal to this community and as a result, we will see more families leave in the coming years which will inevitably result in a net loss of tax receipts for the UK Exchequer unless we offer a more competitive and appealing regime for new long-term arrivals."
