From Morningstar: 2024-04-04 05:26:00

The Labour Party claims that the government’s plans to abolish non-dom tax status will leave a £400 million loophole in the system. The new residency-based tax system will generate £2.7 billion annually, with tax cuts for lower income earners. Assets placed into overseas trusts by 2025 will not be subject to inheritance tax under proposed changes. Labour criticizes the loophole in the plan, alleging it favors the wealthy and questions involvement of PM Rishi Sunak in the scheme.

Labour faces embarrassment over past non-dom status pledges, highlighting a 2015 election incident where then-shadow chancellor Ed Balls defended a policy that had conflicting statements. The government intends to replace the current tax system for non-doms with a simpler residency-based model, reallocating revenue to tax cuts for working individuals. Treasury spokesperson reaffirms the commitment to a fairer tax system.



Read more at Morningstar: Non-Dom Ban Will Create £430 Million Loophole – Labour