One in seven billionaires with strong ties to the UK is resident in a crown dependency or overseas territory, according to new research from LSE and the University of Warwick.
The research coincides with new HMRC statistics revealing that the number of people claiming "non-dom" status in the UK to reduce their tax liabilities dropped by 11% last year as travel restrictions made it harder to move to Britain during the pandemic, according to official data.
Figures from HM Revenue & Customs for the year to March 2021 show that there were 68,300 non-doms in the UK, down from 76,500 the previous year. Despite the fall, they still paid £7.9 billion in tax, the same as a year earlier.
Key points from the joint LSE and Warwick university research, based on those named by the Sunday Times Rich List (STRL), are:
- One in seven of the STRL report that they live abroad, so are unlikely to be resident in the UK for tax purposes.
- Of those in the STRL who are UK resident, 28% (251 people) are likely to be non-doms, compared with just 0.1% of the overall UK population.
Hannah Tarrant, research officer at LSE Inequalities Institute, said: "Though many own substantial wealth in the UK, it is striking to see that one in seven of the billionaires lives in a tax haven."
Arun Advani, associate professor at University of Warwick, said: "This is a reminder that while non-dom regime is alien to most people, use of this tax break is common among the wealthiest. The latest figures show use of this tax perk has continued to remain high, continuing to cost the Treasury money during a cost of living crisis."
Andy Summers, associate professor at LSE Inequalities Institute, said: "Around half of billionaires have significant ties abroad. But those lower down the list appear to be more rooted in the UK, with only one in five living or coming from overseas."
