Thank you for contacting me about non-domicile status.
UK residents who have their permanent home (‘domicile’) outside the UK may not have to pay UK tax on foreign income but they do have to pay tax on income and gains generated in the UK or brought here.
It is estimated that there were 68,300 individuals claiming non-domiciled taxpayer status in the UK on their SA tax returns in the tax year ending 2021. This is down from 75,700 in the tax year ending 2020.
The fall largely has two causes. The primary driver is that there are fewer non-domiciled taxpayers coming to the UK to replace those who normally leave. This is coincident with the travel restrictions caused by the COVID-19 pandemic that led to a substantial reduction in international aviation, sea and rail travel options to the UK.
Additionally, reforms introduced in April 2017 mean that an individual who was formerly non-domiciled might be deemed domiciled for tax purposes if they were born in the UK and have a UK domicile of origin, or if they were resident in the UK for at least 15 of the 20 tax years immediately before the relevant tax year.
Individuals with non-domiciled tax status play an important role in funding our public services through their tax contributions, and in the tax year ending 2021 non-domiciled taxpayers were liable to pay £7.9 billion in UK Income Tax, Capital Gains Tax and National Insurance Contributions.
The number of UK residents who claimed non-domicile tax status in the UK can be found in Table 1 of ‘Statistics on Non-domiciled Taxpayers in the UK,’ available on GOV.UK at: https://www.gov.uk/government/statistics/statistics-on-non-domiciled-ta….
Thank you again for taking the time to contact me.