Is Labour really planning to scrap – or protect – non-dom tax status?

Is Labour’s plan for a short-term replacement for non-dom tax status just a way of dressing up protection for the earnings of rich foreigners earning money in the UK?

When the party was mooted to be considering changes, This Writer’s understanding was that non-doms would be protected so the party could seek donations from grateful beneficiaries.

Now, following the scandal of Chancellor Rishi Sunak’s wife, Akshata Murty, who was avoiding huge tax bills by claiming non-dom status, Labour is saying it will abolish the status and replace it with a shorter-term scheme for temporary residents, lasting up to five years.

The party is claiming that this is in line with similar schemes in other countries.

But here’s a question: what happens, under Labour’s plan, when the five-year period is up? Could the person claiming the tax perk not take a break from the UK and then come back and claim it again – or find some other dodge?

If Labour is serious about this – and it should be welcomed if so – then let’s be sure that it actually does what the party says it does.

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2 thoughts on “Is Labour really planning to scrap – or protect – non-dom tax status?

  1. Jon Lisle-Summers

    I worked in the City during the last Labour government. Non Doms were a political issue even then. They did nothing because there was a positive financial turnover for their version of the economy. Despite heavy warnings about fast and loose trading (subprimes and many others) that could lead to financial implosion, they did nothing. Result: 2008 bust. Which took them and the country down the drain.

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