Abolition of the UK's non-dom regime
Following the Spring Budget and the recent elections in the UK,
it was announced that the existing non-domicile
("non-dom") regime, as it currently exists in the UK,
will be abolished as of 6 April 2025.
By way of brief summary, the non-dom regime which existed in the
UK until now, meant that individuals who reside in the UK, but
whose domicile (being the jurisdiction of an individual's
personal tax status) is outside of the UK, could elect to pay a
fixed amount of tax per annum irrespective of the amount of
overseas income they earned (i.e. overseas income would not be
subject to income tax bands that locally-earned income was subject
to). Consequently, a number of high net worth individuals
("HNWI") (including, according to extensive press
coverage, the wife of the former UK prime minister) took advantage
of this scheme and therefore generating significant tax savings, by
electing non-dom status.
