HMRC publish updated statistics on non-domiciled taxpayers

On 26 July 2018 HMRC published updated statistics on non-domiciled taxpayers. They demonstrate that non-doms remain a crucial part of the UK economy and may have an even more important role to play post-Brexit.

The main headlines are:

• in the 2016/17 tax year, non-dom tax payers contributed almost £9.4 billion in UK income tax, capital gains tax and national insurance contributions. This is an increase of £130m on the previous year and their highest tax contribution since the new non-dom regime was introduced in 2008/09;

• in the 2016/17 tax year, the number of non-dom taxpayers fell from around 120,000 to 91,100. This was largely due to taxpayers switching their tax status from the remittance to arising basis, and also due to a fall in the number of non-UK resident non-dom individuals (those still filing UK Returns despite having left the UK);

• unsurprisingly, the majority of the UK’s non-dom population is located in London, these individuals contributed 74% of the UK income tax, CGT and NI payed by non-doms in the 2015/16 tax year;

• business investment relief remains a vital tax relief for non-doms and excellent for the UK economy. It has encouraged a record £894 million of investment in UK businesses by non-doms in the 2015/16 tax year. The total amount invested in UK businesses by non-dom taxpayers since the scheme’s introduction in April 2012 is almost £2.5 billion.

If you would like to discuss any of the above matters, please speak to your usual Moore Stephens advisor.

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