Press Room

8 Mar 2024

Non-doms: a short-sighted ploy driven by an election – Miles Dean

Partner and Head of International Tax, Miles Dean, argues that the Conservatives’ move to scrap the non-dom tax regime is shortsighted and economically detrimental, in the Financial Times.

Miles’ letter was published in the Financial Times, 8 March 2024.

The Conservatives must be a busted flush if they’re scrapping the non-dom regime, simply to fund tax cuts elsewhere.

This announcement seems an act of desperation for the governing party, who are targeting low-hanging fruit in a futile bid to salvage their electoral prospects. Despite the grandstanding, the fact remains that the non-dom regime is a generally beneficial provision that attracts wealthy foreigners to the UK.

The non-dom regime does need reform and the remittance basis rules are complicated and inefficient, to say the least. They obviously incentivise keeping money out of the UK economy. However, this doesn’t appear to be why Chancellor Jeremy Hunt has made this move.

While the Conservatives have to try to appeal to “red wall” voters, this should not be how they do it. They also probably do not know whether it is worth the potentially huge downside as non-doms flee or opt not to relocate to the UK in the first place.

There is an important discussion to be had about who the UK should be trying to attract and how best to go about that, but short-sighted policy fuelled by electoral desperation is no solution.

Miles Dean

Miles is Head of International Tax at Andersen LLP. He advises privately held multinational companies, entrepreneurs and high net worth individuals on a wide range of cross border tax issues.

Email: Miles Dean