Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the potential effect on tax revenue of abolishing non-domicile status.
No estimate has been made of the potential effect on tax revenue of abolishing the entire special tax regime for non-domiciled individuals.
However, this government has introduced legislation that will change the taxation of non-domiciled individuals by ending permanent non-domiciled tax status. This is part of a wider package of reforms. The full package is expected to raise £1.6 billion in revenue over 5 years.
The figures for the full package are set out in Table 2.2 of Spring Budget 2017 under two rows: “Non-domiciles: abolish permanent status” and “Non-domicile: IHT on UK residential property. They have been certified by the Office for Budget Responsibility.
Measure | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 |
Non-dom: abolish permanent status | -£20m | £410m | £330m | £315m | £310m |
Non-dom: IHT on UK residential property | £25m | £80m | £50m | £55m | £65m |
Non-domiciled individuals make an important contribution to the UK, including £9.3 billion per year in income tax, capital gains tax and National Insurance contributions.