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 data analysed by Bloomberg, over 4,400 directors resigned from UK firms in the past year, with April departures alone up 75 per cent compared with the same month in 2024. The largest losses have been in finance, insurance, and real estate—industries that have traditionally attracted non-dom investors. Among those reportedly planning or considering a move is Lakshmi Mittal, the steel magnate with a £14.9 billion fortune, who relocated to the UK in 1995. Other high-profile departures cited include Anne Beaufour, Max Gottschalk, Alexander Ginzburg, Tim Hanford and Eddie Hearn. Though no official tally exists, a survey by Oxford Economics found that 60 per cent of tax advisers expected at least 40 per cent of their non-dom clients to leave the UK within two years of the policy change. The Office for Budget Responsibility (OBR) had originally projected that 12 to 25 per cent of non-doms might leave as a result of the change. The new regime—based on residency rather than domicile—applies income tax and capital gains tax to global earnings for anyone resident in the UK for more than four years. If a non-dom remains longer, their estate is also drawn into UK inheritance tax, which stands at 40 per cent. The policy was first announced by then-Chancellor Jeremy Hunt in March 2024, effectively co-opting a long-standing Labour pledge. Labour confirmed its own version of the proposal shortly after, setting the stage for the current reforms. The Treasury has indicated it remains committed to maintaining a competitive tax environment while ensuring fairness, and is in continued talks with stakeholders. Further adjustments are likely to emerge as the April 2026 implementation date approaches....