HM Revenue and Customs (HMRC) has released its latest figures on non-domiciled taxpayers for 2023, revealing a notable increase in both the number of taxpayers and the revenue generated.
Key findings from the report include:
Increase in Non-Dom Taxpayers: 12,900 non-domiciled taxpayers arrived in the UK during the 2023 tax year, marking an 18% increase compared to the previous year.
Total Non-Dom Taxpayers: HMRC estimates there are now 74,000 non-domiciled taxpayers in the UK, a 7% rise year-on-year.
Revenue Contribution: Non-domiciled taxpayers contributed £8.9 billion in revenue, a 6% increase from the previous year and the highest level since 2017. This includes an estimated £6.2 billion in income tax, £384 million in Capital Gains Tax, and £2.3 billion in National Insurance contributions.
Nicholas Hyett, Investment Manager at Wealth Club, commented on the potential changes to non-dom status: “Non-doms will soon be extinct in the UK, with the new government looking to abolish the tax status that many wealthy individuals use to shelter their international earnings from UK tax. These numbers are therefore a glimpse into the past, soon to be part of the fossil record.
However, the Labour manifesto promised a process of evolution with ‘a modern scheme for people genuinely in the country for a short period’. These numbers show how important it is to get that new regime right. £8.9 billion of tax revenue is not to be sniffed at, and while taxing the rich might raise more revenue it also runs the risk that the global elite decide to move their taxable wealth somewhere with a lighter touch tax regime.
The government’s task is to deliver an economic climate that’s more welcoming and ideally a good deal more reliable than the British summer has proven this year. If it can achieve that, it has the potential to achieve the best of all worlds – a tax regime where the wealthy contribute more, but don’t feel the need to flee abroad to sunnier climes.”
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Number of non-dom taxpayers rises 7 per cent, contributing £8.9bn to UK revenue
