Let non-doms pay £250,000 and avoid some UK tax – Nigel Farage
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Let non-doms pay £250,000 and avoid some UK tax – Farage
Reform UK has announced it would give non-domiciles the chance to avoid some UK taxes by paying a £250,000 fee, with the proceeds going to people on the lowest incomes. “Many people are leaving and we want as many entrepreneurs, as many risk-takers and as many people paying lots of money,” said Chancellor Rachel Reeves. “Nigel Farage can brand this whatever he wants – the reality is his first proper policy is a gold mine,” he said. “Reform” would have to either raise public services or cut public services such as the NHS to compensate for the loss of tax revenue. “We want to be able to pay the fee for a new Britannia Card and in return not be on the need to pay a fee,” he added. “It’s a good point,” said Reeves, but argued there would not be an impact on the cost of the fee. “There’s no way of knowing if we’re going to pay it or not”
Reform UK has announced it would give non-doms the chance to avoid some UK taxes by paying a £250,000 fee, with the proceeds going to people on the lowest incomes.
Non-domiciles (or non-doms) live in the UK but have a permanent home overseas for tax purposes.
Under Reform’s plan, non-doms would pay the fee for a new Britannia Card and in return not be taxed on wealth, income or capital gains earned abroad. They would also avoid the need to pay inheritance tax.
Labour Chancellor Rachel Reeves said the measure amounted to a “tax cut for foreign billionaires” and Reform would have to either raise taxes or cut public services such as the NHS to compensate for the loss in revenue.
Reform UK says income from the measure would be transferred annually tax-free to the bank accounts of the lowest paid 10% of full-time workers.
The party estimates its policy would raise between £1.5bn to £2.5bn annually, equating to £600 – £1,000 per low-paid worker.
Speaking in central London, Reform UK leader Nigel Farage said “tens of thousands” of people would be tempted to the UK by the offer of the card, which could be renewed every 10 years, with no additional cost.
“Many talented people are leaving and we want as many entrepreneurs, as many risk-takers, as many job creators, as many people paying lots of tax, as many people investing huge sums of money.”
Asked if the policy was an example of “fantasy economics”, he said the initial £250,000 payment would be “just the tip of the iceberg of what these people will pay if they come back” in stamp duty and VAT in the UK.
Questioned on whether an influx of wealthy people would push up property prices in London, he said it was a “good point” but argued there would not be an impact on the cost of affordable housing.
Speaking to the BBC’s World at One, Dan Neidle, who is founder of Tax Policy Associates and a Labour member, estimated the policy would cost £34bn in lost revenue over five years, pointing to figures from the government’s OBR spending watchdog.
He also warned that foreign, highly-skilled professionals unable to afford the £250,000 fee could, under Reform’s plans, have to pay full tax in the UK and their home country, meaning they would be discouraged from moving to the UK.
He added that the “very wealthy” were unlikely to believe the policy would be in place for the long term and could therefore be unwilling to pay the fee.
Last year, the Labour government announced it would be abolishing the tax status, which allows non-doms to only pay UK tax on money they earn in the country.
The so-called loophole meant wealthy individuals were able to legally save money by choosing a lower-tax country as their permanent home.
Earlier this year, Chancellor Rachel Reeves said that, having listened to “concerns that have been raised by the non-dom community”, she would introduce a more generous transition phase to the policy.
There are reports she is considering watering down the policy further after claims it has triggered an exodus of wealthy people from the UK.
The government says its package of measures would raise £12.7bn over the next five years.
Under previous rules, non-doms paid an annual fee of £30,000 or £60,000 depending on how much time they had spent in the UK.
According to HMRC figures, 74,000 people claimed non-dom status in 2022-23.
Responding to the Reform UK policy, a Labour spokesperson said: “Nigel Farage can brand this whatever he wants – the reality is his first proper policy is a golden ticket for foreign billionaires to avoid the tax they owe in this country.
“As ever with Reform, the devil is in the detail. This giveaway would reduce revenues raised from the rich that would have to be made up elsewhere – through tax hikes on working families or through Farage’s promise to charge them to use the NHS.”
Conservative shadow chancellor Mel Stride said: “The British public need a real plan for putting more money in their pockets – but what Reform are peddling is fantasy economics. Their promises are ruinously irresponsible.
“Only Kemi Badenoch and the Conservatives believe in the fiscal responsibility our country needs.”
Let non-doms pay £250,000 and avoid some UK tax
Let non-doms pay £250,000 and avoid some UK tax – Farage. Reform UK says income from the measure would be transferred annually tax-free to the bank accounts of the lowest paid 10% of full-time workers. The party estimates its policy would raise between £1.5bn to £2.5billion annually, equating to £600 – £1,000 per low-paid worker. Labour Chancellor Rachel Reeves said the measure amounted to a “tax cut for foreign billionaires”
2 hours ago Share Save Kate Whannel Political reporter Joe Pike Political correspondent Share Save
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Reform UK has announced it would give non-doms the chance to avoid some UK taxes by paying a £250,000 fee, with the proceeds going to people on the lowest incomes. Non-domiciles (or non-doms) live in the UK but have a permanent home overseas for tax purposes. Under Reform’s plan, non-doms would pay the fee for a new Britannia Card and in return not be taxed on wealth, income or capital gains earned abroad. They would also avoid the need to pay inheritance tax. Labour Chancellor Rachel Reeves said the measure amounted to a “tax cut for foreign billionaires” and Reform would have to either raise taxes or cut public services such as the NHS to compensate for the loss in revenue.
Reform UK says income from the measure would be transferred annually tax-free to the bank accounts of the lowest paid 10% of full-time workers. The party estimates its policy would raise between £1.5bn to £2.5bn annually, equating to £600 – £1,000 per low-paid worker. Speaking in central London, Reform UK leader Nigel Farage said “tens of thousands” of people would be tempted to the UK by the offer of the card, which could be renewed every 10 years, with no additional cost. “Many talented people are leaving and we want as many entrepreneurs, as many risk-takers, as many job creators, as many people paying lots of tax, as many people investing huge sums of money.” Asked if the policy was an example of “fantasy economics”, he said the initial £250,000 payment would be “just the tip of the iceberg of what these people will pay if they come back” in stamp duty and VAT in the UK. Questioned on whether an influx of wealthy people would push up property prices in London, he said it was a “good point” but argued there would not be an impact on the cost of affordable housing.
Reform’s ‘Robin Hood’ plan amounts to £31bn tax cut for wealthy, say tax experts
Reform UK’s plan to let non-doms paying £250,000 to avoid other taxes amounts to a £31bn giveaway for wealthy foreigners, experts have warned. The policy would also leave a £34bn hole in the public finances, they said. Reform leader Nigel Farage insisted the proposed change to non-dom tax rules was “very attractive’. But experts said Reform made an “error’ and did not think through the implications for people who are already in the UK. The party estimates that the policy would generate £1.5bn to £2.5billion given out to households, or about £600 to £1,000 per low-paid worker. But Dr Arun Advani, director of think tank CenTax, told The i Paper that the proposal would cost taxpayers £34billion over five years. Dr Advani said the £34 billion cost was a “big problem” that would force Reform to raise taxes, cut spending or increase borrowing.
Reform has emphasised that it would give up to £2.5bn to poorer households – but experts said wealthy billionaires would gain much more
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Reform UK’s plan to let non-doms paying £250,000 to avoid other taxes amounts to a £31bn giveaway for wealthy foreigners, experts have warned.
The policy would also leave a £34bn hole in the public finances, they said.
Under Reform’s proposal, non-domiciles, who live in the UK but have a permanent home overseas for tax purposes, could pay £250,000 for a “Britannia Card” which would shield them from paying tax on wealth, income or capital gains earned abroad, as well as inheritance tax.
The funds would be redistributed directly to about 2.5 million workers earning a full-time salary of less than £23,000.
Reform UK leader Nigel Farage said “tens of thousands” of people would be tempted by the UK by the offer of the card, which could be renewed every 10 years with no extra cost.
Speaking in central London, he said: “Many talented people are leaving and we want as many entrepreneurs, as many risk-takers, as many job creators, as many people paying lots of tax, as many people investing huge sums of money.”
The party estimates that the policy would generate £1.5bn to £2.5bn given out to households, or about £600 to £1,000 per low-paid worker.
But Dr Arun Advani, director of think tank CenTax, told The i Paper that the proposal would cost taxpayers £34bn over five years, citing estimates from the Office for Budget Responsibility for 2024/25 to 2029/30.
Even if non-doms spend £2.5bn on “Britannia Cards”, the £34bn in lost tax receipts effectively means foreigners would get a tax cut of at least £31bn, he said.
Dr Advani said the £34bn cost was a “big problem” that would force Reform to raise taxes, cut spending or increase borrowing.
He said the only people who would voluntarily pay the flat £250,000 tax are going to be those who would otherwise owe the Government much more.
Another plank of Reform’s plans would involve abolishing a four-year exemption, which allows new UK residents to be exempt from most taxes for four years and was introduced to replace the non-dom regime.
Dr Advani said some highly skilled migrants who would have benefited from this four-year tax break will not find it worthwhile to pay the £250,000 fee and therefore will be discouraged from coming to the UK and settling here.
He said the policy “doesn’t make any economic sense”.
“It’s going to cost a lot of money, discourage some people who come here to work, and be a big giveaway to some very wealthy people,” he said.
Dan Neidle, director of the Tax Policy Associates think tank, said Reform made an “error” and did not think through the implications for people who are already in the UK, for whom this £250,000 fee would just be an expense.
“Reform only thought about one category of non-dom: the billionaires they want to attract,” he told The i Paper. “They didn’t think about normal nom-doms, and they also didn’t think about the rich people who are already here.”
He said the policy was likely to backfire and lead to skilled professionals such as doctors, lawyers and bankers deciding not to come to the UK.
Mr Neidle said Reform’s plans are “just not serious” and would “provide a very large and expensive tax windfall to a small number of very wealthy people who are already here”.
Earlier this month, the Institute for Fiscal Studies (IFS) said Reform’s previous pledges “do not add up”, with tax cuts costing nearly £90bn and spending increases of £50bn a year.
In an analysis of the party’s manifesto, the think tank’s economists said Reform’s spending reductions would save less and tax cuts would cost tens of billions more than the party had estimated.
When pressed on the £34bn cost of his policy, Farage insisted the proposed change to non-dom tax rules was “very attractive” – but added that he was “not clever enough” to answer questions about the overall costing for the policy.
He dismissed criticism as “off-the-wall nonsense”.
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Getty Images Reform UK councillors have not been formally invited to the 139th Durham Miners’ Gala
A woman who was poisoned by fake Botox, Reform UK councillors not being formally invited to the Durham Miners’ Gala and Nissan unveils new electric car to be built in Sunderland. Here are some stories from Wearside you may have missed this week.
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Getty Images The first Durham Miners’ Gala took place in 1871
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Nissan unveils new electric car to be built in UK
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Reform UK’s Doge team will descend on Northamptonshire’s two unitary councils. Reform UK leader Nigel Farage explained how it would work. He said Doge would ask “Who’ve you assigned to do this job? How long is the contract for? What’s the cost? Is it based on results?” Labour’s Sally Keeble is concerned about the accountability and use of data. Conservative leader Helen Harrison said the review should be carried out by officers rather than an external team. Doge was invented by Donald Trump’s billionaire advisor, Elon Musk, in 2023. The idea was to end the “tyranny of bureaucracy” and save taxpayers’ money and cut the US national debt, he said. But so far two million federal workers have been offered a deal to leave, he added. The Doge review will take place at West Northampton Council and North Northampton Council, which are run by Reform UK, in the near future. Some politicians have questioned whether experts would really work for free, and suggested the pro bono element might not be good for local people.
1 day ago Share Save Martin Heath BBC News, Northamptonshire Share Save
Getty Images Reform UK said its Doge team included software engineers and data analysts
They have caused a stir in Donald Trump’s US and now Elon Musk-style Doge teams are descending on Northamptonshire’s two unitary councils, which are run by Reform UK. What can people in the county expect from them and what have they achieved elsewhere?
What is Doge all about?
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Hardly anyone had heard the acronym Doge before Donald Trump returned to the White House in 2025. The idea is reported to have surfaced first at a dinner party where Donald Trump’s billionaire advisor, Elon Musk, was speaking in 2023. The Tesla, Space X and X businessman told fellow diners that, if given the passwords to government computers, he could streamline its operations. When Trump became President again this year, he set up the Department of Government Efficiency (Doge) and put Musk in charge of it. Its aim was to end the “tyranny of bureaucracy”, save taxpayers’ money and cut the US national debt, said Musk. What has actually happened so far is two million federal workers being offered a deal to leave.
What are Reform UK’s Doge team doing in Northamptonshire?
Laura Coffey/BBC Reform UK’s leader Nigel Farage met the party’s leader and deputy leader at North Northamptonshire Council, which is on the list for a Doge visit
A preliminary meeting with the Doge team happened this week at West Northamptonshire Council, and it will be descending on North Northamptonshire in the near future following the huge swing from the Conservatives to Reform UK in the May local elections. The Reform UK leader, Nigel Farage, who received a hero’s welcome when he met his councillors in Corby on Tuesday, explained how it would work. “The Doge team comes in and it talks to the officers and says ‘we want to look at the books, we want to see what money’s been spent on this, what money’s been spent on that, we want to see the credit card statements, we want to see the contracts’,” he said. He took repairing potholes as an example and said Doge would ask “Who’ve you assigned to do this job? How long is the contract for? What’s the cost? Is it based on results?” He insisted that “not everything about Doge is critical, not everything about Doge is slagging off what’s gone before. I’m really hoping that Doge can help everybody”. Reform UK said its team in West Northamptonshire would consist of “software engineers, data analysts and forensic auditors”.
How much is Doge costing taxpayers?
Reform UK Reform UK’s Doge supremo Zia Yusuf (front and centre) in Northampton this week
The short answer, according to Reform UK, is nothing. Mark Arnull, leader at West Northamptonshire, said: “The cutting-edge expertise the Doge team are providing free of charge will make it that much easier to identify waste and free up funds.” Martin Griffiths, who leads West Northamptonshire, said: “We’re not going to pay a penny [for the Doge review] so that’s why our officers are fully in support of this.” Some politicians have questioned whether experts would really work for free, and have suggested the pro bono element might not be good for local people. Rich Lehmann, Green party leader in Kent, the first council to undergo the process, said: “The fact that they have software engineers offering to work ‘for free’ is of particular concern, given that the data they are forcefully requesting access to would include significant volumes of commercially sensitive information and the personal data of many of Kent’s most vulnerable residents.”
How have opposition parties reacted to Doge in Northamptonshire?
Labour’s Sally Keeble has demanded the release of all communication between Reform UK and West Northamptonshire Council
The leader of the Labour group on West Northamptonshire Council, Sally Keeble is concerned about the team’s accountability and use of data. She has submitted a Freedom of Information request for all communication between the council and the team to be disclosed. She said: “If the Reform administration wants to appoint Doge, they should put the organisation through a transparent procurement process with safeguards in place for people’s personal data.”
The Conservative opposition leader, Helen Harrison, said council officers should carry out reviews
Helen Harrison, who leads the Conservative opposition in North Northamptonshire, has said she would welcome any efficiencies but believed the review should be carried out by council officers rather than an external team. Jonathan Harris, who leads the Liberal Democrat group in the North, said: “We understand that during the visit on Friday, 13 June the Doge team asked for no information, were provided with no information, didn’t share a plan, and yet proclaimed that they were already ‘starting to save taxpayers money’.”
Jonathan Harris asked why taxpayers were paying for councillors if external teams were doing their job
Harris added: “It begs the question why taxpayers are paying cabinet member allowances, including basic councillor allowances of around £424,000 to the [Reform UK] administration. “It’s their job to lead, set strategy and establish savings, not the responsibility of an unelected group of individuals.” West Northamptonshire’s Independent councillor Ian McCord said he had written to the council leader to ask whether advice had been sought about the legal standing of the Doge unit, and whether data held by the council would be safe.
What effect has Doge had elsewhere?
Kent County Council was the first to be visited by Reform UK’s Doge team
NIgel Farage is adamant that the Doge approach is working. He said: “Already, in other counties, we have found examples of pretty egregious expenditure.” In Derby, where there is a cabinet member for council efficiency (Doge), the party claimed to have made efficiency savings equating to £6,000 per day. It later admitted that figure was a mistake and was more like £4,000 per day.
Georgia Roberts/BBC John Lawson is the cabinet member for Doge at Derby County Council
An unlikely winner so far from the Doge initiative has been the public sector workers’ union Unison. According to data released to Sky News, weekly new memberships increased by an average of 272% in the week after the May election results were announced. From a weekly average of 12 new members at North Northamptonshire the union saw the figure shoot up to 27 in the week following the election. Farage has admitted that efficiencies may be more difficult to find in Northamptonshire’s two unitary councils, which came into being in 2021, than in some older authorities. Other politicians have pointed out that councils already face regular audits so Doge teams would simply duplicate that process. On the available evidence, though, two things look certain: Northamptonshire will go through the Doge process, and it will still be controversial.