Non-Dom Tax Status Scrapped

On 6th of April this year, non-dom tax status became history with the Finance Act 2025 coming into force.

The new rules introduced a new tax regime based on residence. This means that all longer-term UK residents will be taxed by the UK on their worldwide income and gains as they arise, rather than, as had been the case for some non-doms previously under the remittance scheme, when the income and gains were brought into the UK.

The government projects that delivering on this manifesto pledge will bring £12.7 billion into the treasury over the next 5 years.

For new arrivals to the UK, the rules provide 100% relief on eligible foreign income and gains in their first four years of tax residence, provided they have not been a UK tax resident in the ten tax years immediately prior to their arrival.

Changes were also made to the Temporary Repatriation Facility, introducing a three-year scheme allowing people impacted by abolition of non-dom tax status to bring their assets to the UK at a discounted tax rate.