Labour says by scrapping ‘non-dom’ status it could raise £1bn
Labour has said it would get rid of non-domicile status, following the row over Chancellor Rishi Sunak’s wife’s tax affairs.
The opposition pledged a tax overhaul to stop people who live in the UK long-term from avoiding paying tax, saying scrapping the system could raise more than £1bn a year.
In a policy announcement, the party said it would “abolish non-dom status and crack down on hidden offshore trusts.”
This comes after Sunak’s Indian-born wife Akshata Murty agreed to pay UK tax in full on all her global earnings. She made the decision in wake of revelations she had been using her non-domicile status to limit how much she was giving, despite living in the UK.
It was also revealed that health secretary Sajid Javid had also held non-dom status.
Those are non-domicile are able to pay between £30K-£90K a year in order for their global earnings to not be subject to UK taxes.
According to the Telegraph, Shadow Chancellor Rachel Reeves said “it simply isn’t right that those at the top can benefit from outdated non-dom tax perks.”
“With Labour, people who make the UK their home will contribute to this country by paying tax on their global income.”
The party said the policy was part of a tax overhaul, which includes ending the 200-year rule meaning that non-dom status is passed through patrilineal lines.
There are reportedly 1,000 non-doms who have been in the UK for up to seven years, with more than £70m in tax reductions taking – hill eliminating the status could raise £1bn.