What's happened
Chancellor Jeremy Hunt has abolished the non-dom tax status, replacing it with a new residency-based system in the Budget. This move mirrors a longstanding Labour policy and is expected to raise
£2.7bn annually. Labour's shadow chancellor, Rachel Reeves, criticizes the timing of the decision, highlighting missed opportunities for additional revenue. The abolition of non-dom tax status is a significant development in tax policy, impacting the taxation of wealthy foreign nationals in the UK.
Why it matters
Chancellor Jeremy Hunt's decision to abolish the non-dom tax status marks a significant shift in tax policy, aligning with Labour's stance and aiming to raise revenue for tax cuts. The move is likely to have political implications, with Labour criticizing the timing of the decision. The impact of this change on tax revenue and the taxation of wealthy foreign nationals will be closely monitored, shaping future fiscal policies and political debates.
What the papers say
The Independent highlights the reversal of Tory orthodoxy by Chancellor Jeremy Hunt in scrapping the non-dom tax status, potentially impacting Labour's funding plans. The Guardian emphasizes the overhaul of the tax system for new arrivals to the UK, reflecting a shift towards a fairer residency-based approach. BBC News reports on the abolition of non-dom tax breaks by Chancellor Jeremy Hunt, aligning with Labour's long-standing call for this change.
How we got here
The abolition of the non-dom tax status by Chancellor Jeremy Hunt follows years of debate and political positioning. The move aligns with Labour's policy stance and aims to generate revenue for tax cuts. The non-dom tax status has been a contentious issue, allowing wealthy foreign nationals to avoid UK tax on overseas earnings. The decision reflects a shift towards a more equitable tax system and has implications for tax revenue and fiscal policy in the UK.
More on these topics
-
Jeremy Richard Streynsham Hunt is a British politician serving as Member of Parliament for South West Surrey since 2005. A member of the Conservative Party, he served in the Cabinet from 2010 to 2019, most recently as Foreign Secretary from 2018 to 2019.
-
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
-
A treasury is either
A government department related to finance and taxation, a finance ministry.
A place or location where treasure, such as currency or precious items are kept.
-
The Labour Party is a centre-left political party in the United Kingdom that has been described as an alliance of social democrats, democratic socialists and trade unionists.
-
A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
-
Rishi Sunak is a British politician who has served as Prime Minister of the United Kingdom and Leader of the Conservative Party since 2022.
-
The Conservative Party, officially the Conservative and Unionist Party, and also known colloquially as the Tories, Tory Party, or simply the Conservatives, is a political party in the United Kingdom.