A new report written by ex-Treasury economist Chris Walker estimates that more than 10% of non-doms have already packed their bags and fled the UK thanks to Labour scrapping the non-dom tax status. Another big blow to Reeves…
The report titled UK Non-Doms Tax Reform: A Critique and Retrospective Analysis estimates 26,000 non-doms – out of 238,000 who claimed non-dom status in the last 18 years – have left the UK based on figures from Henley & Partners on the number of millionaires leaving London in 2024. Data from the CEBR estimates if 25% of non-doms were to leave the UK, the net gain for the Treasury would be zero. Any higher the Treasury would start losing revenue…
The report also points out:
Chris Walker, founder of CW Economics and the report’s author said:
“It is clear that the original research that underpinned the Government’s decision to abolish non-dom status took a leap of faith. Its methodology around predicting behavioural changes was too narrow and that led to very optimistic findings about the number of non-doms who would leave and the amount of tax revenue the Treasury would raise”
Laffer curve already kicking into action…
Speaking to Sky News off the back of Rachel Reeves’ Air Passenger Duty hike, Ryanair chief executive Michael O’Leary said:
“Labour is dependent on those Red Wall seats, and yet every move she makes poisons economic growth and damages the UK’s recovery… it’s the Chancellor who stumbles from policy misstep to policy misstep… I think her policy decisions are incredibly stupid.”