Farewell Non-Doms
Think tank: Adam Smith Institute
Author(s): Maxwell Marlow; Mitchell Palmer
October 17, 2024
This report from UK think tank the Adam Smith Institute looks at how non-dom reforms can damage Britain’s finances.
A new paper from the Adam Smith Institute (ASI), entitled Farewell Non-Doms: How Non-Dom reforms can damage Britain’s finances, reveals the economic cost of scrapping the non-dom status.
Its research suggests that if this policy was introduced, some 5,800 of our 21,100 ‘remittance basis’ non-doms – those taxed only on income and gains made in the UK – would leave this country. This estimate of a 26% drop is based on evidence from Denmark’s introduction of a targeted tax increase for high-income foreigners.
Under this scenario, the ASI forecasts that the UK economy will be losing £600 million a year by 2030 including some 23,000 jobs.
By 2035, Britain will be losing almost £1.3 billion every year. This will lead to a cumulative loss of £6.52 billion.
