Rachel Reeves would soften non-dom tax changes

Chancellor Rachel Reeves has announced that plans to abolish non-dom status will be amended to allow a more generous phase-out of tax benefits.

Reeves told an audience at the World Economic Forum in Davos that changes would be made to upcoming legislation to increase the generosity of a facility to help non-doms send their money back to the UK.

Non-dom status enables people living in the UK to avoid paying UK tax on money made abroad because their permanent home for tax purposes is outside the country.

Labor promised to end this situation in its election manifesto, saying it would remove unfairness in the tax system and raise additional money for public services.

However, critics have raised concerns that the changes could prompt wealthy people to leave Britain.

“We are listening to the concerns that have been raised by the non-dom community,” Reeves said at an event hosted by the Wall Street Journal.

The size of the changes to the Temporary Repatriation Facility, a three-year scheme to help former non-doms bring their assets to the UK at the 12% tax rate, was described as a “twitch” with no significant change expected Will go. Funds raised from the overall policy.

This change will be made through amendment in the Finance Bill.

The Chancellor decided to announce the relaxation in Davos as part of a multi-pronged effort to show his willingness to change policy to help economic growth.

On Wednesday he also planned changes to visas to allow top talent in artificial intelligence (AI) and pharmaceutical research to come to the UK.

Some in the industry believe there is an opportunity for Britain under the new administration to capture top talent in science and pharmaceuticals from the US and in AI from the EU.