HM Revenue & Customs (HMRC) have recently published the annual update of statistics on non-domiciled and deemed domiciled individuals in the UK.
Non-domiciled individuals are typically those who were born outside the UK and have a permanent home outside the UK. Deemed domiciled individuals are those who were previously non-domiciled in the UK and fall into either one of the below categories:
- Individuals were born in the UK and returned to the UK on or after 6 April 2017
- Individuals who have been UK resident for at least 15 of the 20 tax years before the tax year in question
Below is the summary of key findings from this year’s annual update which includes provisional figures for the tax year from 6 April 2022 to 5 April 2023:
- There were 12,900 newly arrived non-domiciled taxpayers since the peak of the Covid-19 pandemic – an increase of 18% from prior year.
- The amount of total non-domiciled and deemed domiciled taxpayers has increased by 6% in comparison to prior tax year – from 78,800 to 83,800.
- The amount of combined tax and National Insurance Contributions (NICs) liabilities have decreased by 1% – from £12.4 billion to £12.3 billion. This is the second-largest annual tax liability from this group since 2018.
- It is worth noting that whilst Income Tax and NICs liabilities were at their highest levels, Capital Gains Tax (CGT) liabilities dropped by over 28% from prior year.
- The revenue from non-domiciled taxpayers accounts for around 73% of the above £12.3 billion figure – an increase from the year before and at its highest level since 6 April 2017.
- Deemed domiciled taxpayers are thus liable for the remainder of the £12.3 billion combined tax liability, though the actual tax liabilities from this group are likely to be higher, subject to deemed domiciled taxpayers indicating their status correctly on the self-assessment returns.
The above statistics do not include the potential non-domicile policy changes which were announced in Spring Budget earlier this year. London and Capital have published an article talking about potential changes which could affect non-domiciled and deemed domiciled taxpayers in the UK.
Please note, L&C do not provide tax advice, we collaborate with you and your London & Capital Adviser to structure your wealth in the most tax-efficient way possible.
