Papers Cover Adam Smith Institute’s Latest Non-Doms Research

New research from the Adam Smith Institute outlined the damaging impacts of scrapping the non-dom tax regime.

The abolition of the non-dom regime is already causing wealth creators to flee the UK at a time when we desperately need to keep them. But ahead of the new rules coming into force on the 6th April, a new report from the Adam Smith Institute (ASI) warns that this non-dom exodus could be even worse than anticipated. Britain’s High Net Worth Exodus, or ‘WExit’ is already a major cause for concern. High Net Worth Individuals (HNWIs) contribute a disproportionate amount in taxes and business activity. But the Finance Bill, as it is currently drafted, will create a punitive and arbitrary set of rules for non-doms. In particular, some non doms could be charged an effective tax rate of 67% on their foreign businesses. They could also be charged additional taxation by HMRC on any income or capital gains brought over under the Government’s Temporary Repatriation Facility. A significant number of non-doms may leave in the face of such uncertainty, creating a hole in the UK’s finances.

Click here to read the full research.

New analysis from the Adam Smith Institute (ASI) also revealed the potential scale of the economic damage that may be caused by the abolition of the non-dom status. It forecasts that the UK could be facing up to £14.2 billion of lost growth every year by 2035, leading to a cumulative loss in the next ten years of £111 billion. It also showed that the UK could lose up to 44,415 jobs by 2030.

The research was covered in The Times, The Telegraph, The Standard, Bloomberg, City AM, Guido Fawkes, Conservative Home and many other outlets.