[ad_1]
Labour’s non-dom policy was a centrepiece of the election campaign – promising to use the £1bn a year proceeds to fund NHS and dental appointments, and school breakfast clubs.
Chancellor Rachel Reeves committed to ending the “loopholes” again in Liverpool this week at the party’s annual conference.
Prime Minister Sir Keir Starmer said they are doing it because “those with the broadest shoulders should bear the heavier burden”. The pain on the way being shared equally.
But now it’s claimed Ms Reeves may water down the crackdown amid concerns the policy will not make as much money as had been expected.
There are said to be concerns the Office for Budget Responsibility, which independently scores every policy, will say it will raise far less than was suggested – if anything at all.
Politics latest: SNP demands probe into Labour donations row
“Non-dom” is short for “non-domiciled individual” and refers specifically to the tax status of a person who is a UK resident but whose permanent home is abroad.
The Treasury would not comment on budget speculation – but said it was committed to ending the “outdated” non-dom tax arrangement and attracting talent and investment to the UK. Labour’s budget is set to take place on 30 October.
After former chancellor Jeremy Hunt removed non-dom tax breaks in his final budget in March, Labour insisted they would go further – with a “full fat” rather than “semi-skimmed” version, a source said.
The loopholes they identified were axing a 50% tax discount in the first year, intended to encourage investment; and making money stashed in trusts liable for UK inheritance tax.
Wealthy non-doms moving abroad
Experts have warned in meetings with the Treasury these are already leading wealthy non-doms to move elsewhere.
[ad_2]
