Number of new non-doms falls 40pc

THE number of new nondoms in Britain has plunged by 40pc in a year as the threat of a tax crackdown on foreign nationals begins to alienate entrepreneurs.

New claims for non-dom tax status fell from 14,200 to 8,500 in the 2020-2021 tax year, according to a Freedom of Information request submitted to HM Revenue & Customs. It marked a further decline from the 15,400 new claims made in 2018-19.

Non-dom status exempts British residents with their permanent home abroad from paying UK tax on their foreign income or capital gains.

They must still pay tax on any UK income or money brought into the UK, but the status saves the average individual more than £100,000 in income tax and capital gains each year, according to a recent study by the University of Warwick and London School of Economics.

Sophie Warren, of law firm Pinsent Masons, which submitted the request for information, said: “Many non-doms are highly successful entrepreneurs which have established or invested in UK companies. The availability of non-dom status gives the UK a competitive advantage in attracting talented and wealthy individuals.”