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Reeves Considers Reversing Inheritance Tax for Non-Doms After Wealthy Exodus

New projections suggest the levy could cost the Treasury millions due to high-net-worth residents relocating overseas

Britain's Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street
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Overview

  • The chancellor is weighing a U-turn on the April 2025 rule that subjects all UK residents’ global assets to a 40% inheritance tax following reports of a mass departure
  • Analysts identify the worldwide estates levy as the main factor driving non-doms to quit, warning it may leave the policy revenue-negative
  • High-profile individuals including Lakshmi Mittal and Goldman Sachs banker Richard Gnodde have left or plan to leave; Magda Wierzycka says she would stay if the levy is softened
  • The Office for Budget Responsibility initially forecast £200m in annual revenues, but forecasters warn that a one-third exit could cost the Exchequer up to £700m in the first year
  • Treasury officials insist the UK remains a competitive destination and say they will work with stakeholders to refine the new residence-based tax regime