The UK will adjust the tax reform for the so-called non-domiciled residents, that is, those with their main place of residence abroad, due to the "unforeseen" effect.
The legislative changes, which are due to take effect from April 2025, are aimed at abolishing the non-dom regime, which allowed wealthy foreigners living in the UK not to pay taxes on foreign income.
The initial version of the reform stipulated that money transferred through foreign bank accounts after April 2025 could be taxed, even if it was earned during the period when tax benefits for non-domiciled residents were still in effect.
However, the UK Treasury recently announced amendments - past earnings will not be taxed if they remain outside the UK.
The upcoming reform has already increased the outflow of wealthy foreigners from the UK.
In 2024, more than 10,000 millionaires left the United Kingdom, which is 157% more than in 2023. This means that the UK has lost more affluent residents than any other country, with the exception of China.A study conducted by New World Health and Henley & Partners shows that the UK has become a country of net outflow of millionaires after the Brexit vote in 2016, however, the largest outflow occurred last year.
Sources: Financial Times, Sky News
