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Aug 10, 2022

Number of non-dom taxpayers drops, says HMRC

HMRC has reported a drop in the number of non-domiciled taxpayers in the tax year 2020/21.

The number of individuals claiming non-domiciled status fell 11% year-on-year, from 76,500 to 68,300. Despite the drop, the total income tax, capital gains tax and National Insurance contributions (NICs) paid by people with non-dom status remained at a stable £7.9 billion.

A further £3.4bn was also paid by 10,100 individuals deemed domiciled in the UK.

HMRC said the additional £3bn from domiciled taxpayers offsets the estimated £2bn decrease in annual receipts from non-dom taxpayers, which was the result of changes in 2017 to the taxation of non-dom individuals.

The drop in the number of non-dom taxpayers over 2020/21 could also be attributable to the COVID-19 pandemic, as travel restrictions prevented new non-dom individuals from travelling to the UK.

The decrease in the total number of non-domiciled taxpayers from 119,400 in 2015/16 to 79,500 in 2019/20 is "largely explained" by taxpayers becoming deemed domiciled rather than taxpayers leaving the UK, says HMRC.

The statistics from HMRC are based on self-assessment tax returns only, so they do not take into account tax receipts from other taxes, including VAT, stamp duty land tax, inheritance tax and corporation tax.

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