UK to Abolish Non-Dom Tax Status by 2025, Aiming for Fairer Tax System

The move, announced by Chancellor Jeremy Hunt, is expected to raise £2.7 billion annually by 2028-29 and will fund National Insurance cuts.

Chancellor Jeremy Hunt announces the abolition of the non-dom tax regime, set to take effect in April 2025, as part of efforts to create a fairer tax system.
The change will require new arrivals to the UK to pay the same tax as British nationals after four years, ending a system that allowed wealthy foreigners to avoid paying UK tax on overseas income.
The abolition of the non-dom status is projected to raise £2.7 billion a year by 2028-29, with the funds aimed at reducing National Insurance for working people.
Critics argue the move could deter foreign investment and add uncertainty to the UK's growth prospects, with concerns over the impact on long-term investment.
Prime Minister Rishi Sunak was recused from policy discussions on the non-dom status to avoid a conflict of interest, given his family's previous use of the tax status.