The Financial Times quotes Sophie Dworetzsky on potential drawbacks of changing or scrapping UK non-dom rules

Chancellor Jeremy Hunt has been urged by colleagues not to put “politics ahead of economics” as he considers last-minute plans to scrap or scale back Britain’s “non-dom” tax rules.

Hunt and Prime Minister Rishi Sunak will finalise decisions for the March 6 Budget, with a priority being placed on finding cash to fund pre-election national insurance or income tax cuts.

But government insiders have reportedly revealed that the latest forecasts by the Office for Budget Responsibility have left Hunt with £2bn less than he expected, piling pressure on him to activate emergency revenue-raising measures.

Sophie Dworetzsky, Partner in our private client team, comments for the Financial Times. She explains some of the potential negative consequences that may come from non-dom rules being altered or scrapped:

Many individuals who are non-doms generate meaningful economic activity and entrepreneurial wealth in the UK, so we have concerns that these changes could shrink the UK’s private wealth sector. 

"The UK is also facing a world of increased tax competitiveness, and many regimes, not least the Italian regime, are increasingly attractive to individuals deciding between the two.

Read the full article in the Financial Times here (subscription required).