What is non-dom?

A person with non-domiciled status, sometimes called a 'non-dom', is a person living in the United Kingdom who is considered under British law to be domiciled (i.e. with their permanent home) in another country. Tax status is determined by residence and domicile; nationality is irrelevant.

What does UK non-dom mean?

What is a non-dom? "Non-dom" describes a UK resident whose permanent home - or domicile - for tax purposes is outside the UK. It refers to a person's tax status, and has nothing to do with their nationality, citizenship or resident status - although it can be affected by these factors.

How much tax did non-Doms pay?

Non-domiciled taxpayers on the remittance basis in the tax year ending 2023 are liable to pay £7 billion in Income Tax, CGT and NICs as outlined in Figure 6 (and Table 5). This is an increase from tax year ending 2022 of £524 million and £618 million above the pre-pandemic level of tax year ending 2020.

Do non-doms pay inheritance tax?

UK inheritance tax (IHT) is limited to UK based assets unless a non-dom (i) becomes UK domiciled by forming an intention to remain in the UK permanently or indefinitely, or (ii) is deemed to be UK domiciled by being UK tax resident in 15 out of the previous 20 UK tax years.

How much does it cost to be a non-dom?

There's no charge to use the remittance basis until an individual has been UK tax resident for more than seven out of the previous nine tax years. After that, it costs £30,000 each year to claim the remittance basis. This charge increases to £60,000 once an individual has been resident for more than 12 years.

Who are the UK's 'non-doms'?

How many non-doms have left the UK?

At Least 10 Per Cent Of UK Non-Doms Have Left – Report. More arguments are being made that whatever the presumed unfairness of the old system, the abolition of the UK's resident non-domicile regime is driving significant numbers of HNW and UHNW individuals from the UK, and by more than some had expected.

How many days can I spend in the UK as a non-resident?

46 Days - If you spend less than 46 days in the UK in any year, you will maintain your non resident status (provided you have not been classed as a UK resident for the previous 3 tax years. If you have had non resident status for less than this, you must spend less than 16 days in the UK).

How do non-doms avoid taxes?

Individuals with 'non-dom' status can avoid UK tax on their foreign income and gains, provided these are not brought into the UK. If foreign income is below the £2,000 tax income threshold, it is tax-exempt unless remitted to the UK.

What is the most you can inherit without paying taxes in the UK?

What is the 7 year tax free gift rule?

The 7 year rule

No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule.

What is the most unpopular tax in the UK?

Inheritance tax – Britain's “most-hated” tax is often misunderstood. Misplaced confidence over inheritance tax (IHT) rules leave Brits with wrong assumptions over tax liability.

What is the 4 year FIG rule?

The FIG regime is available to anyone who has been non-UK resident for at least the previous ten tax years – so even individuals originally born in the UK can use it. It applies to you for a period of four years starting from 6 April 2025, or the first tax year in which you become UK resident if earlier.

What is replacing the non dom?

The non-dom regime will undergo a fundamental reform starting on 6 April 2025. This reform will replace the remittance basis with a new four year foreign income and gains (FIG) regime and transition to a residence-based system for inheritance tax.

Do I have to pay UK tax if I live abroad?

Tax if you're non-resident

If you're non-resident, you do not pay UK tax on income or gains you get outside the UK. You may be non-resident the day after you leave the UK - this depends on your situation and how 'split year treatment' applies to you. You may need to pay UK tax if you're non-resident and have UK income.

How to avoid capital gains tax in the UK?

How does HMRC check residency?

You may be resident under the automatic UK tests if: you spent 183 or more days in the UK in the tax year. your only home was in the UK for 91 days or more in a row - and you visited or stayed in it for at least 30 days of the tax year.

How long can you live in England without being a citizen?

If you get pre-settled status, you can live and work in the UK for up to 5 years. While you have pre-settled status, you can leave the UK for a total of 6 months in any 12-month period. If you're away for more than 6 months, you might lose your pre-settled status.

Can I claim all my tax back when I leave the UK?

Yes, you can. HMRC gives you up to four years to claim a UK tax refund from a previous tax year. That means even if you left the country a while ago, you could still be owed money. It's especially common if you didn't realise you were eligible at the time or never got around to claiming.

Why are wealthy people leaving the UK?

Drivers of the rising exodus

Wealthy non-doms have been targeted with additional taxes, which has prompted many of them to leave the country. Capital gains tax and estate duty rates in the UK are among the highest in the world, which deters wealthy business owners and retirees from living there.

Is non-dom status scrapped in the UK?

With effect from April 6, 2025, the non-domicile status for UK resident individuals has been abolished and has been replaced with a new regime, which includes transitional provisions.

How many Brits have never left the UK?

“2016 study revealed that nearly a quarter of British adults have never been on a plane, and 10% have never left the UK.

What is the 10 year rule in the UK?

Overview. You may be able to apply for indefinite leave to remain if you've been in the UK legally for 10 continuous years (known as 'long residence'). Indefinite leave to remain is how you settle in the UK. It's also called 'settlement'.

What is the new rule for the UK in 2025?

An initial reduction to the list of jobs eligible for Skilled Worker visa sponsorship took effect on 22 July 2025. The revised list will be in place until the end of 2026; the Migration Advisory Committee is reviewing which medium-skilled jobs should be on the list beyond that.

What does the 7 year rule apply to?

The Inheritance Tax seven-year rule

Gifts to individuals that aren't immediately tax-free will be considered as 'potentially exempt transfers'. This means that they will only be tax-free if you survive for at least seven years after making the gift.