Examining the UK's non-dom regime
This project examines the effects of tax policy on the behaviour of the wealthy, focusing specifically on the UK's long-standing non-domiciled ('non-dom') tax regime. For over a century, this system allowed individuals who lived in the UK but claimed their permanent home was abroad to avoid paying tax on foreign income, a privilege originating in the 1799 Income Tax Act and limited to non-doms since 1915.
The research team used administrative data from HMRC to assess the fiscal impact of abolishing non-dom status and to understand how affected individuals respond to tax changes. Their analysis found that:
- Non-doms collectively hold over £10 billion in offshore income.
- Abolishing non-dom status could raise approximately £3.2 billion in tax revenue.
- Most non-doms chose to remain in the UK following earlier reforms, and those who left were typically among the lowest tax contributors.
This work has received significant media coverage, which can be viewed under the 'News' tab below. These findings provided the crucial evidence base for the eventual abolition of the non-dom regime in March 2024. It demonstrates how empirical social science can shape meaningful and lasting policy change.