1 week Ago By The Guardian
Rachel Reeves has said she will amend the finance bill to soften planned changes to the tax regime for “the non-dom community” after intense lobbying from wealthy UK residents. In the latest evidence of the government’s determination to roll out the red carpet for businesses and investors in an effort to kickstart growth, the chancellor said she would tweak tax arrangements announced in her October budget for those claiming non-domiciled status. The current regime allows these non-doms – usually a wealthy individual whose father was born overseas – to avoid paying tax on their overseas earnings in the UK in exchange for fees.
Reeves is replacing this with a shorter residence-based regime from April . Related: Davos day three: UK’s Jonathan Reynolds impressed by Trump optimism; Milei blasts wokism — live updates “We have been listening to the concerns that have been raised by the non-dom community,” the chancellor told the Wall Street Journal editor-in-chief, Emma Tucker, at a fringe event at the World Economic Forum meeting in Davos, in comments first reported by the Times. It is understood that the changes relate to the temporary repatriation facility, which allows those registered to bring money into the UK.
A Treasury source said: “We’re always interested in hearing ideas for making our tax regime more attractive to talented entrepreneurs and business leaders from around the world to help create jobs and wealth in the UK.” The business secretary, Jonathan Reynolds, later confirmed the planned change, telling journalists in Davos: “There is a tweak to the finance bill.” He added: “Of course, when you’re changing a tax regime, people will want to know, and there’ll be some uncertainty there, so we’ve got to get that message out.
” Reeves and Reynolds have been touring events and parties at Davos sending the message that the UK is open for business – with the chancellor insisting that growth has to “trump” other concerns , including the government’s commitment to net zero. The business secretary said: “We have a great pitch to make. We are talking to people who want to invest in the UK who are, I think seeing, first of all, our pitch to political stability, certainly relative to other European countries, and our commitment to openness.
” The non-dom regime is a relic of the UK’s colonial past, and allows those who claim the status to avoid paying tax on their overseas earnings in the UK. Reeves’s immediate predecessor as chancellor, the Conservative Jeremy Hunt, announced he was going to scrap the 225-year-old tax scheme in his budget last spring . Labour promised in opposition to go further, and Reeves announced the new registration-based regime in her 30 October budget.
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