Treasury Reconsiders Labour's Non-Dom Tax Status Plan
The Treasury is reconsidering Labour's plan to abolish non-domicile tax status due to revenue concerns. The plan aims to raise one billion dollars for healthcare and education but may fall short if wealthy foreigners leave the UK. Adjustments like phased inheritance tax and foreign income discounts are now being considered.
The Treasury is reassessing Labour's manifesto plan to abolish non-domicile (non-dom) tax status due to concerns about revenue generation.
The plan aims to raise one billion dollars for public services like hospital appointments, dental care, and school breakfast clubs.
However, Treasury officials fear changes may not achieve the expected revenue, particularly if wealthy foreigners emigrate.
No policy has been submitted to the Office of Budget Responsibility (OBR), but the potential revenue loss is already highlighted.
Adjustments such as phased implementation of inheritance tax on trusts and foreign income are being considered.
Nevertheless, the Treasury insists the non-dom status will ultimately be abolished.
The plan aims to raise one billion dollars for public services like hospital appointments, dental care, and school breakfast clubs.
However, Treasury officials fear changes may not achieve the expected revenue, particularly if wealthy foreigners emigrate.
No policy has been submitted to the Office of Budget Responsibility (OBR), but the potential revenue loss is already highlighted.
Adjustments such as phased implementation of inheritance tax on trusts and foreign income are being considered.
Nevertheless, the Treasury insists the non-dom status will ultimately be abolished.
