Q&A: Labour’s proposals for the non-dom regime

Labour have promised to change the tax treatment of non-doms if they are elected but have been vague as to how. With such uncertainty there is no one-size-fits-all response and non-UK domiciled individuals should speak to their advisers to discuss the various possible outcomes and what they might do in each scenario.

What is the proposal?

The shadow chancellor Rachel Reeves first committed Labour to major reform back in April 2022 when she stated that Labour ‘would abolish [non-dom] status’.

This has evolved over time and the latest suggestion (from Jonathan Reynolds MP on 12 February 2024) is that there would be a consultation followed by the replacement of non-dom status with ‘a modern regime for people who are going to be in the country for a short period of time’.

Countries such as France and Germany have been referenced as models to emulate....