The chancellor will assess self-assessment tax returns for the 2025–26 tax year, with findings expected to be published in 2026. It marks the first time the government has publicly confirmed that it is formally evaluating the consequences of ending the centuries-old tax regime.
Non-dom status, which was scrapped in April, previously allowed wealthy UK residents to avoid paying British tax on income and assets held overseas by claiming their permanent home was abroad. Reeves replaced the system with a residence-based model, a move that has proved highly controversial among internationally mobile individuals, particularly because of its impact on inheritance tax exposure.
The government has forecast that the reforms will raise £34 billion in additional tax receipts by 2029–30. However, economists and tax advisers have warned that the estimate may be optimistic, citing signs of an accelerating exodus of high-net-worth individuals.
In recent weeks, we have reported that Mohamed Mansour, a long-standing Conservative Party donor, has shifted his residence from the UK to Egypt, while Lakshmi Mittal, the Indian steel magnate, is understood to have moved his tax residency to Switzerland.
Details of the review emerged following a freedom of information request submitted by Chris Walker, an economist at consultancy ChamberlainWalker, who sought payroll data relating to non-doms. HM Revenue & Customs rejected the request, citing an ongoing “review” of the non-dom reforms.
Walker criticised the refusal, saying: “It is deeply troubling that HMRC is still refusing to release this vital payroll data on non-doms at a time when ministers are relying on these reforms to underpin future tax revenues.”
The move builds on groundwork laid by Jeremy Hunt, the former Conservative chancellor, who initiated plans to abolish non-dom status but stopped short of sweeping inheritance tax changes. Reeves went further after taking office, arguing the reforms were necessary to improve fairness and shore up the public finances.
The Treasury now faces mounting pressure to demonstrate that the policy will not ultimately weaken the tax base by driving wealth, and associated economic activity, offshore.
Jamie Young
Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the 'covid era' and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine's coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk
