Thu, 23 Jan 2025

Rachel Reeves to soften non-dom tax changes

It comes after critics warned the plans could prompt wealthy people to leave the UK.

* Chancellor Rachel Reeves has announced that plans to abolish non-dom status will be amended to allow a more generous phase out of tax benefits.
* The changes will be made to the Temporary Repatriation Facility, which helps ex-non-doms bring their assets back to the UK at a discounted tax rate.
* The facility will become more generous, but the government's overall approach to replacing the non-dom tax regime remains unchanged.
* The move is expected to raise an additional £460m for state schools in 2024/25.
* Critics have raised concerns that the changes could prompt wealthy individuals to leave the UK, with a recent report suggesting over 10,000 millionaires left the country in 2024.
* The Scottish National Party has accused Chancellor Reeves of doing a "Davos deal for millionaires", saying the government is out of touch with those struggling with the cost-of-living crisis.
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