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 Strategist: Dominic Raab, former deputy prime minister joins Kreab London as senior adviser

Mace | May 22, 2026

The former deputy prime minister and foreign secretary will be advising Kreab global clients on defence and intelligence-related issues, as well as international geopolitics and Westminster issues.

The Downing Street revolving door undermines democracy and weakens policymaking

Lucy Carrier-Pilkington | May 21, 2026

With the battle for Labour's leadership far from over, Lucy Carrier-Pilkington analyses what a change in leader could mean for policymaking.

Leader in UK Public Affairs: Jessica Lennard, Chief Strategy Officer, Competition and Markets Authority – “I’m an obsessive starter finisher”

Mace | May 20, 2026

After leaving Linklaters, Jessica joined the Conservative Party’s Shadow Energy and Climate Change team in 2008 just as energy security and climate policy were rising rapidly up the

Time to pay-up: why the government is right to crack-down on late payments by large companies

Mace | May 20, 2026

New legislation in the King's Speech to clamp down on large companies paying small suppliers late is long overdue, says Sarah Stone

The Renters’ Right Act will bury the UK housing market, says leading UK developer Kamal Pankhania

Mace | May 19, 2026

With the UK housing market already under economic pressure, this is not the right time to introduce new rental reforms that will damage investor confidence, says Kamal Pankhania,

Reflections on starting up a new centre-right think tank by Jonathan Brown

Jonathan Brown | May 19, 2026

Jonathan Brown, CEO of Centre for a Better Britain, explains why Westminster needed a new think tank for a new political era

Inside the Red Queen’s campaign war chest

Lucy Carrier-Pilkington | May 14, 2026

Now Angela Rayner has been cleared by HMRC, will she stand to be the next Prime Minister? Lucy Carrier-Pilkington reveals has the financial and political backing in place.

Westminster Street Fight for the Labour crown

Lucy Carrier-Pilkington | May 13, 2026

With Wes Streeting resigning and Angela Rayner now cleared by HMRC, all eyes are on Westminster's Game of Thrones-style battle for the Labour crown

Wes Streeting could be Britain’s next PM — here are the lobby groups who come with him 

Lucy Carrier-Pilkington | May 12, 2026

Calls for Keir Starmer to quit are getting louder, Lucy Carrier-Pilkington examines what new leadership could mean for the lobbying industry.

Starmer faces his day of reckoning

William Cash | May 12, 2026

Starmer's future hangs in the balance as Labour prepares for a potential leadership contest.