Budget: Jeremy Hunt confirms he will abolish the non-dom system
Jeremy Hunt says he will abolish the non-dom system which lets foreign nationals avoid paying UK tax on money made overseas, replacing it with a “modern, simpler and fairer residency-based system”
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00:00 >>Mr Speaker, could you please shout more quietly?
00:08 >>Chancellor, we will replace the non-DOM regime with a modern, simpler and fairer residency-based
00:16 system. From 25 April, new arrivals to the UK will not be required to pay any tax on
00:24 foreign income and gains for their first four years of UK residency—a more generous regime
00:30 than at present and one of the most attractive offers in Europe. But after four years, those
00:36 who continue to live in the UK will pay the same tax as other UK residents. Recognising
00:42 the contribution of many of these individuals to our economy, we will put in place transitional
00:48 arrangements for those benefiting from the current regime. That will include a two-year
00:54 period in which individuals will be encouraged to bring wealth earned overseas to the UK,
01:00 where it can be spent and invested here—a measure that will attract onshore an additional
01:05 £15 billion of foreign income and generate more than £1 billion of extra tax. Overall,
01:12 abolishing non-DOM status will raise £2.7 billion a year by the end of the forecast
01:21 period. That is money the party opposite planned to use for spending increases, but today a
01:28 Conservative Government make a different choice. We use that revenue to help cut taxes on working
01:35 families.
01:36 [Chanting] We will not give it back!
01:38 [Chanting] We will not give it back!
01:40 [BLANK_AUDIO]