Another U Turn Coming ?17 Jun 2025 10:43
“Rachel Reeves is reportedly mulling over changes to inheritance tax (IHT) on non-doms for assets held around the world, as pressure has ramped up from the City.
That’s according to a report in the Financial Times, with “tweaks” to current rules to stem the UK’s haemorrhaging of non-doms.
This potential U-turn follows pressure on the Chancellor to deliver a “clearer, more stable tax environment” for businesses and wealth creators.
As of April, global assets have been slapped with a 40 per cent inheritance tax, which the FT claims is the aspect of the rule changes that has caused the most trouble in the Square Mile.
According to research released earlier in June, four in ten non-doms are actively considering ditching the UK for somewhere with a more favourable tax regime.
Meanwhile, City AM reported earlier in the month that the fiscal “black hole” left by the one in ten non-doms – at least 25,000 – who left the UK in 2024, amid a government tax crackdown.
The £34bn shortfall would easily wipe out the Chancellor’s razor-thin fiscal headroom, and could lead to tax rises.”
What a 💩 show this lot are. Total incompetence.