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Labor Party plans to tighten taxation of non-dom” status
Read why rich foreigners are set to lose their special status and what impact this could have on Britain. Find out more about the planned tax changes and people's reactions.
Labor Party plans to tighten taxation of non-dom” status
If the British Labor Party wins the election, it plans to tighten the “non-dom” status for wealthy foreigners in order to generate additional revenue for the United Kingdom. Tougher taxation of these foreigners could generate up to £2.6 billion more for the state, according to shadow chancellor Rachel Reeves. Non-dom status, introduced more than 200 years ago, allows foreigners to pay their taxes on foreign income abroad rather than in the UK.
In addition to tightening non-dom status, Reeves plans to tackle tax evasion by hiring 5,000 more tax officers, bringing the state £5 billion in annual revenue from tackling tax evasion by the end of the decade. Some of the additional income will go towards the NHS and school meals for primary school children.
Despite concerns from the Institute for Fiscal Studies about a possible outflow of wealth, Reeves intends to tax rich foreigners and expats more heavily and also make them pay inheritance taxes. The Conservatives have criticized Reeves' plans, claiming Labor has no credible funding solution for its promises, while Labor generally supports higher taxes. The Conservatives are also under criticism because the tax rate has risen to its highest level since the 1950s.