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Non-dom Status: Abolition

Volume 745: debated on Tuesday 6 February 2024

9. Whether he has made a recent assessment of the potential merits of abolishing non-domiciled tax status. (901365)

The Government want the UK to have a fair but internationally competitive tax system, designed to bring in talented individuals and investment that contributes to the growth of the economy. Non-doms play an important role in funding our public services through their tax contributions. They pay tax on their UK source income and gains in the same way as everyone else.

The Minister talks of fairness, but the fact is that during the cost of living crisis nearly a million more struggling pensioners will start paying income tax, because of the freeze in personal allowance rates, while the Government protect some of the richest members of society through non-domicile status. Scrapping that status could bring the Treasury an extra £3 billion a year. Why do the Government not do the right thing and bring in that extra money to protect pensioners and the lowest paid?

Non-doms contributed about £8.5 billion in taxes in 2022, and have contributed to investment to the tune of £7 billion since 2012. The hon. Gentleman will be well aware that scrapping their status would not be risk-free in a world in which people can be quite mobile, and could damage the UK’s competitiveness. As for the need for other support, that is exactly why we have been reducing national insurance rates, for example.