Reeves considers u-turn on non-dom tax amid sharp rise in wealth exodus

Mace | 18th June 2025 | Policy & Think Tanks, Politics
05/07/2024. London, United Kingdom. Rachel Reeves, Chancellor of the Exchequer poses for a photograph following her appointment to Cabinet by Prime Minister Sir Keir Starmer in 10 Downing Street. Picture by Lauren Hurley / No 10 Downing Street
05/07/2024. London, United Kingdom. Rachel Reeves, Chancellor of the Exchequer poses for a photograph following her appointment to Cabinet by Prime Minister Sir Keir Starmer in 10 Downing Street. Picture by Lauren Hurley / No 10 Downing Street

Rachel Reeves is considering diluting Labour’s proposed inheritance tax reforms for non-doms after a rise in wealthy individuals leaving the UK. More than 4,400 directors have resigned in the past year, with high-profile business figures relocating. The Treasury is reviewing policy details ahead of the 2026 rollout.

Chancellor Rachel Reeves is considering a revision of Labour’s flagship overhaul of the non-domiciled tax regime following mounting evidence that high-net-worth individuals are leaving the United Kingdom in greater numbers than initially projected. Internal discussions have centred on potentially softening the proposed extension of inheritance tax on foreign assets held by non-doms, in an attempt to stem the outflow of capital and talent from the country. The Treasury is reviewing implementation plans ahead of the April 2026 deadline for the changes, which would bring the worldwide assets of non-doms into scope for British inheritance tax. The current proposals replace the long-standing system allowing wealthy residents with foreign domiciles to shield offshore income and assets from UK taxation by paying an annual charge starting at £30,000. The change has already coincided with a notable increase in wealthy individuals and business figures relocating. According to Companies House dat...

Subscribe to The Mace

Join the member community shaping British politics and stay ahead of what's really happening in the world of politics and public affairs, with expert analysis, breaking news, and insider insights from Westminster and Brussels. The Mace is the leading news source and resource for the government affairs industry, offering required reading and lobby intelligence for professionals.

To see what you are missing out on by not subscribing to The Mace, click here to download our full membership info-pack. This includes having no paywall on op-ed content or profiles/interviews, allowing professional profiles to be read with maximum impact and visibility by government, special advisers, MPs, peers, civil servants, and policy and political decision-makers.



The ex-Cameron outsider who ran out of road in California

William Cash | November 4, 2026

Steve Hilton, David Cameron's one-time guru, has lost his bid to become California's first Republican governor in 20 years. So where does a man of so many reinventions

Donald, the lame duck: Trump after the midterms

William Cash | November 4, 2026

Trump told America to treat the midterms as a vote on him. It did. Now comes the reckoning, writes Mace editor-in-chief William Cash from California.

Tough Love: Is cutting benefits for young people fair?

Lucy Carrier-Pilkington | November 3, 2026

It sounds like a straightforward fix: fewer young people on benefits, more in work. But is the reality so simple?

Steve Hilton’s California gamble

William Cash | November 2, 2026

A former Downing Street strategist is standing to be elected as the first Republican governor in 20 years. He's campaigning as if the polls are wrong.

‘It’s like rearranging the deckchairs on the Titanic’: Hospitality leaders say Budget ‘breathing space’ does not go far enough

Lucy Carrier-Pilkington | October 29, 2026

Cut business rates, increased minimum wage, and an overnight tourism levy give mixed results to the struggling sector

UK Budget 2026: Energy Bill Relief, North Sea Oil and Gas, and the Cost of Britain’s Green Transition

Anna Bryzhko | October 29, 2026

The government has promised to ease energy bills while investing in Britain's energy future. But can it support North Sea production, expand clean power and meet climate commitments

Found the Budget boring? Burnham may be thinking of an early election

Lucy Carrier-Pilkington | October 28, 2026

After weeks of anticipation, Healey’s maiden budget looks to designed to re-assure the markets that Labour are fiscally responsible.

Is Britain’s welfare Bill out of control?

Ella Beadman | October 27, 2026

Ahead of the hotly anticipated Budget on Wednesday, Ella Beadman analyses what it could mean for welfare spending

What Can Britain Expect for Defence Spending in the Autumn Budget?

Anna Bryzhko | October 22, 2026

The government has pledged billions more for Britain's military. But can it finance those promises without squeezing other public services?

Healey’s first Budget: Economic pressures and potential tax rises

Lucy Carrier-Pilkington | October 21, 2026

With just a week until the first Budget of the Burnham government is released, Mace analyses what the Chancellor’s biggest challenges are and what taxes might be brought