The UK government is replacing the “non-dom” system that allows wealthy foreigners to pay less tax with a new arrangement based on residency, Chancellor of the Exchequer Jeremy Hunt announced in his budget statement on Wednesday.
So what is non-dom status and why is it changing?
1. What is a non-dom?
The term is short for non-domiciled resident, and refers to a person who lives in the UK but keeps their permanent, registered place of residence abroad. This allowed them to avoid paying UK tax on overseas earnings for up to 15 years.
Instead of paying income tax, there is an annual ...
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