New tax data has allayed fears of a mass non-dom exodus from the UK following Labour’s crackdown on their tax status.
Initial data from HM Revenue & Customs payroll shows the total number of non-doms leaving the country is in line with, or even below, official forecasts.
In her budget last year, Chancellor Rachel Reeves announced plans to abolish non-doms – UK residents whose permanent home is outside the UK for tax purposes.
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This sparked fears that wealthy people would leave the UK as a result of the crackdown.
But just like the stories and speculation about millionaires fleeing Britain, it seems these fears haven’t come to fruition.
The Office for Budget Responsibility had predicted 25% of non-doms with trusts would leave the UK following Reeves’ plans, but a number of surveys warned the number could be far greater, the Financial Times reports.
In what will be welcome news to the chancellor, initial data from HMRC suggests there is no evidence more non-doms than predicted left Britain.
This will alleviate pressure on Reeves and the government to reverse the policy, which is forecast to raise more than £4bn in 2026-27 and almost £6bn the following year.
A government official told the FT: “With all the things going on in the world, Britain looks like a pretty safe and stable place.
“We’ve got a lot to market ourselves on.”
The findings come after a new study earlier this year concluded there had been no ‘millionaire exodus’ from the UK as a result of Labour’s policies.
The non-dom news is a second dose of good news for Labour this week, following higher-than-expected growth figures for the second quarter of 2025. This is expected to maintain the UK’s status as the fastest growing economy in the G7.