Hunt mulls change in non-dom tax breaks for autumn fiscal statement
Treasury officials are looking at potential changes to the UK’s rules on non-domiciled tax status as a part of Jeremy Hunt’s autumn fiscal statement later this month.
The chancellor has reportedly tasked officials on the Treasury’s high net worth individuals policy team to look at ways to cut down on tax breaks for non-doms as the government looks to raise £50bn.
The Guardian reports that Hunt could reduce the amount of time that people with non-domiciled tax status can avoid UK Income Tax and Capital Gains Tax from 15 to five years.
Such a measure could raise almost £2bn in tax revenues.
Prime Minister Rishi Sunak’s wife Akshata Murty benefited from non-dom tax status until she renounced it earlier this year amid controversy.
She previously did not pay Income Tax on much of her income while a UK resident thanks to the status, despite her husband being chancellor.
Hunt is also considering hiking Capital Gains Tax and taxes on dividends, it has been revealed over the past two days.
It comes as the country has been struck by more bleak economic news, with the Bank of England hiking interest rates for the eighth time in a row and the UK heading into what could prove the longest recession in at least a century.
The chancellor acknowledged the difficulties facing homeowners and businesses after the Bank put up its base rate from 2.25 per cent to 3 per cent on Thursday, the highest for 14 years.
He said there were problems affecting economies around the world, but in the UK Prime Minister Rishi Sunak would “fix” the issues caused by Liz Truss and Kwasi Kwarteng in September’s ill-fated mini-budget.