Taxation: Domicil

(asked on 6th October 2017) - View Source

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.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 16th October 2017

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.

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