There was no mass exodus...
While those on the right tried to whip up a moral panic over tax rises on ‘non-doms’, claiming that there would be a mass exodus of wealthy individuals leaving the UK, official data shows that their claims were once more overly exaggerated.
In April the chancellor, Rachel Reeves, scrapped the non-domiciled tax status, which allowed wealthy individuals with connections abroad to avoid paying full UK tax on their overseas earnings.
That led to a panic among right-wingers who tried to claim that it would lead to a mass exodus of wealthy elites which in turn would be bad for the economy.
However, according to a report in the Financial Times, official HMRC payroll data has found no evidence to suggest more non-doms left Britain in response to Rachel Reeves’ 2024 Budget than official predictions.
The paper reports: “Reeves was told by the Office for Budget Responsibility to expect 25 per cent of non-doms with trusts to quit the country in response to the crackdown on their tax status, which began under the Conservatives and intensified when Reeves became chancellor last year.
“HMRC data now suggests this prediction is broadly correct, the people said, removing pressure on Reeves to reverse a Labour policy that is forecast to raise more than £4bn in 2026-27 and almost £6bn the following year.”
Basit Mahmmod is editor of Left Foot Forward
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