Plans to raise additional funds to fund public services like the NHS have raised concerns that they may encourage rich immigrants to just leave the UK.
A person who resides in the UK but whose permanent residence, or domicile, is outside the country is referred to as a “non-dom”.
“These reports are speculation, not government policy,” a Treasury spokeswoman stated. The costings of all the initiatives proposed during the Budget will be certified by the impartial Office for Budget Responsibility (OBR) in the customary manner.”
The non-dom tax structure would be phased out, according to a March 2024 announcement made by then Conservative chancellor Jeremy Hunt.
But he also made concessions meant to lessen the motivation for affluent immigrants who had a permanent residence overseas to leave their native country.
Treasury officials recognize that Labour’s plans to remove two concessions from the previous government may not raise the £1 billion they had anticipated, if any money at all. This is despite the fact that no precise policy has been presented to the OBR as part of the process for next month’s Budget.
The Labour manifesto sets aside £1 billion for school breakfast clubs, additional hospital and dental visits, and other expenses.
Approximately 50% of the funds earned through the broader abolition plan were already expected to be lost due to behavioral modifications.
