Rachel Reeves has ordered a review into the impact of abolishing the UK’s non-domiciled tax status, as questions grow over whether the reforms will deliver the revenues promised by the Treasury.
The chancellor will assess self-assessment tax returns for the 2025–26 tax year, with findings expected to be published in 2026. It marks the first time the government has publicly confirmed that it is formally evaluating the consequences of ending the centuries-old tax regime.
Non-dom status, which was scrapped in April, previously allowed wealthy UK residents to avoid paying British tax on income and assets held overseas by claiming their permanent home was abroad. Reeves replaced the system with a residence-based model, a move that has proved highly controversial among internationally mobile individuals, particularly because of its impact on inheritance tax exposure.
The government has forecast that the reforms will raise £34 billion in additional tax receipts by 2029–30. However, economists and tax advisers have warned that the estimate may be optimistic, citing signs of an accelerating exodus of high-net-worth individuals.
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