HMRC have released more statistics showing the number of non-UK domiciled taxpayers and the amount of UK tax they have paid; based on their estimates the number of non-doms in the UK decreased by 24% for 2016/17 compared to the previous year.

According to HMRC figures there were only 91,100 non-domiciled taxpayers in the UK in 2016/17, compared to around 120,000 in the two previous tax years, which seemed low in the first place. 76,800 of these individuals were resident in the UK compared to 86,400 in 2015/16.

2016/17 saw a rise in UK Income Tax, Capital Gains Tax and National Insurance contributions paid by non-domiciled taxpayers to £9.4 billion which is the highest amount paid since 2007-08. The number of individuals using the remittance basis in 2015/16 was up by just 100 on the previous year at 54,700; this is expected to increase once late-filed returns are received.

HMRC analysis suggests two equal reasons for the decline in non-dom numbers but increase in the tax take from them:

  • Taxpayers changing their status declaration from non-domiciled to domiciled and continuing to pay tax in the UK.
  • The departure from the UK tax system in 2016/17 of non-domiciled taxpayers who had previously contributed relatively little tax compared to other non-doms.

This is supported by the fact that the proportion of these individuals who were UK resident (and therefore UK taxpaying on worldwide income and gains) increased in 2016/17 to 84% compared to 72% in the previous year.

The number of individuals claiming Business Investment Relief increased dramatically from just 400 in 2014/15 to 1,400 in 2015/16; this unlimited relief allowed the remittance of £894million into the UK tax free in 2015/16.

It is to be expected, following the introduction of the deemed domiciled rules  for income tax and capital gains tax from 6 April 2017, that the numbers of those declaring themselves as non-UK domiciled in the future may be even lower. With a current taxpaying population of around 31 million the reported number of non-doms is such a tiny proportion that it seems HMRC’s estimates here are just that… estimates.


Non domiciled status, deemed domicile and tax

Non Domicile tax toolkit  

Offshore income toolkit


HMRC Statistics on non-domiciled taxpayers in the UK 2007-08 to 2016-17


Wouldn’t it be great and think how much TIME it would SAVE you if someone:

  • READ all the latest tax news, case decisions, new legislation and articles in tax and then summarised them for you?
  • Only alerted you to things that are RELEVANT to you?

How about if that someone also:

  • Updated those summaries in REAL TIME for you
  • ADDED examples, planning points, toolkits and calculators, and
  • Linked all that information together and also provided you with CPD?

Thousands of firms of accountants and advisers are already using as their primary TAX resource.

At a cost of just £1 per day, it’s a no brainer: FREE up your MIND and your TIME (and your wallet).

And...we run our Virtual Tax Partner support service, if you need assistance with a particular query or technical issue.