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