Chancellor Rachel Reeves is reconsidering recent changes to inheritance tax that affect wealthy individuals, particularly those who previously held non-dom status. Initially, Reeves aimed to abolish non-dom status to increase fairness in taxation and projected an additional £12.7bn in revenue over five years from these reforms. Following backlash from affluent individuals, she made minor adjustments to transitional arrangements. Reports suggest she might now further modify regulations implemented in April that tax worldwide assets of UK residents at 40%, responding to lobbying pressures and concerns about losing wealthy taxpayers to other jurisdictions.
Rachel Reeves, after a backlash from wealthy individuals following the introduction of new inheritance tax regulations, is reportedly considering modifying changes affecting non-domiciled statuses and taxing worldwide assets.
The chancellor, in her autumn budget, emphasized that wealthy individuals who make the UK their home should contribute fully to UK taxes, aiming for fairness in tax policy.
Despite concerns of an exodus of wealthy individuals from the UK due to tax reforms, some analysts, including the Tax Justice Network, have questioned this narrative.
The government aims to ensure that the new inheritance tax regime remains internationally competitive while continuing to attract talent and investment to the UK.
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