Rachel Reeves launches review into impact of non-dom tax overhaul

"The chancellor will assess self-assessment tax returns for the 2025-26 tax year, with findings expected to be published in 2026. It marks the first time the government has publicly confirmed that it is formally evaluating the consequences of ending the centuries-old tax regime. Non-dom status, which was scrapped in April, previously allowed wealthy UK residents to avoid paying British tax on income and assets held overseas by claiming their permanent home was abroad."

"Reeves replaced the system with a residence-based model, a move that has proved highly controversial among internationally mobile individuals, particularly because of its impact on inheritance tax exposure. The government has forecast that the reforms will raise £34 billion in additional tax receipts by 2029-30. However, economists and tax advisers have warned that the estimate may be optimistic, citing signs of an accelerating exodus of high-net-worth individuals."

"Walker criticised the refusal, saying: "It is deeply troubling that HMRC is still refusing to release this vital payroll data on non-doms at a time when ministers are relying on these reforms to underpin future tax revenues.""

Rachel Reeves will assess self-assessment tax returns for the 2025-26 tax year, with findings expected in 2026, to evaluate the consequences of ending non-dom status. Non-dom status was scrapped in April and replaced with a residence-based model that removes the previous ability for wealthy UK residents to avoid UK tax on overseas income and assets by claiming a foreign permanent home. The government forecasts £34 billion in additional receipts by 2029-30, but economists and tax advisers warn the estimate may be optimistic amid signs of an accelerating exodus of high-net-worth individuals and recent residency moves to Egypt and Switzerland. HMRC rejected a freedom of information request about payroll data, citing an ongoing review.

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