From April 2025 there will be significant changes to non-domiciliary (non-dom) tax status in the UK and this will have significant implications for individuals who claim this status. Here are some key points regarding the changes and their impact:

1. Changes Introduced: The government has tightened the rules around non-dom status, particularly targeting long-term residents. Key changes include:
   • Time Limit: Individuals who have been resident in the UK for 15 out of the past 20 years will lose their non-dom status and be subject to UK tax on their worldwide income and gains.
   • Inheritance Tax (IHT): Non-doms may now be liable for IHT on their UK assets, aligning their tax treatment more closely with UK-domiciled individuals.
2. Implications for Tax Planning: These changes could lead to increased tax liabilities for long-term residents who previously benefitted from non-dom status. Affected individuals may need to reassess their financial and estate planning strategies.
3. Impact on Wealth and Investment: The tightening of non-dom rules may deter some wealthy individuals from moving to or remaining in the UK, potentially impacting investment and economic activity.
4. Compliance and Reporting: Non-doms will need to be more vigilant in their tax reporting and compliance to ensure they meet their obligations under the new rules.

Overall, these changes represent a shift towards a more equitable tax system, but they also pose challenges for individuals who have utilised non-dom status for tax planning.