The number of non-domiciled taxpayers in the UK rose by 7% in 2023.
This increase resulted in a record £8.9 billion in revenue.
Increase in Non-Dom Taxpayers
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. 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.
This increase signifies a growing trend of affluent individuals contributing to the UK’s economy.
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.
The substantial revenue underscores the economic importance of non-domiciled taxpayers.
Potential Changes to Non-Dom Status
Nicholas Hyett commented, “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.”
Hyett noted the Labour manifesto promised a modern scheme for short-term residents.
The challenge is to create a tax regime that encourages the wealthy to stay and contribute more.
A Modern Tax Regime
Anthony Whatling noted a slight increase in non-dom numbers, but expects this trend to be short-lived due to upcoming tax reforms by the Labour Government.
While these reforms may take two years to reflect in statistics, anecdotal evidence suggests many non-doms are considering relocation.
Labour’s four-year regime aims to attract wealth but faces competition from other European countries.
Positive Contributions and Future Changes
Today’s figures show combined tax and NICs liabilities of £12.3 billion.
Allowing non-doms to bring foreign income and gains tax-free from 2025 should lower investment barriers.
The true impact of these changes remains speculative.
The rise in non-domiciled taxpayers highlights their significant economic contribution.
Future tax reforms will determine their continued impact on the UK economy.
