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Over 10% of UK Non-Dom Residents Leave After Status Abolition, Treasury Faces Revenue Shortfall

Flawed modelling underestimated the scale of the exodus from a policy that did not account for international flat-tax competition.

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Overview

  • A report by former Treasury economist Chris Walker estimates that more than 26,000 non-dom taxpayers—over 10% of the total—have departed the UK since April’s abolition of the status.
  • The original 2022 Warwick University study forecast only a 0.37% departure rate, a projection now criticised as overly optimistic and incomplete.
  • Centre for Economics and Business Research analysis warns that if 25% of non-doms leave the UK, the Treasury’s net revenue gain would fall to zero.
  • The Office for Budget Responsibility assigned a very high uncertainty rating to the policy’s revenue costings, flagging significant fiscal risk.
  • Italy and Greece have rolled out flat-tax regimes to lure departing non-dom residents, intensifying competition for wealthy taxpayers.