What is non-dom status (and what replaced it)?
Non-dom status let UK residents whose permanent home was abroad avoid UK tax on foreign income. Abolished in April 2025, it was replaced by a 4-year residence-based regime — and the argument over taxing the globally wealthy hasn't stopped.
What it was, and what replaced it
For two centuries, "domicile" — a concept about where your father considered home — let wealthy UK residents pay tax only on money brought into Britain. From April 2025 that ended: the new Foreign Income and Gains regime gives new arrivals four years of tax-free foreign income, after which worldwide income is taxed like everyone else's. Long-standing non-doms also lost inheritance-tax protection on offshore trusts.
The live argument: did they leave?
Reports of millionaire departures duel with studies finding exits far smaller than predicted; the truth is genuinely contested and the revenue stakes are billions either way. That's the vacuum Reform's Britannia Card fills — a £250,000 fee buying non-dom-style status back, with the proceeds redistributed to low earners. Critics call it selling tax citizenship; supporters call it pricing what other countries (Italy's flat tax, Dubai's zero) give away.
Why it matters now
Non-dom is the test case for every "tax the rich" argument: how mobile is wealth really? The same question decides the Green wealth tax debate — and whichever way the evidence lands, it will shape what any future government believes it can charge the globally wealthy.
Plain-English guide for general information only — not financial, legal or tax advice. Rates are 2025/26 unless stated. Last reviewed 5 July 2026.
Frequently asked questions
What is a non-dom?
A UK resident whose permanent home ('domicile') was legally abroad, historically letting them shelter foreign income from UK tax. The status was abolished in April 2025 in favour of a residence-based system.
What replaced non-dom status?
The Foreign Income and Gains (FIG) regime: new UK arrivals pay no tax on foreign income for their first four years of residence, then worldwide taxation applies. Offshore trusts also lost their inheritance-tax shelter.
What is Reform UK's Britannia Card?
A proposal to let wealthy foreigners buy a renewable 10-year non-dom-style status for a £250,000 fee, with the fees redistributed to the lowest-paid workers. Supporters say it attracts mobile wealth; critics say it sells tax privileges.