The UK government has announced plans to tighten tax regulations for non-domiciled residents, which is expected to have a significant impact on the financial landscape.

The Chancellor of the Exchequer, Rachel Reeves, has revealed that a new residence-based tax regime will replace the existing non-dom system from April 2025. This reform aims to eliminate exemptions that currently allow non-domiciled individuals to minimize their tax liabilities on foreign earnings.

It is projected that these anticipated changes will generate approximately £12.7 billion ($16.6 billion) in revenue over the next five years. Financial advisors have warned that these reforms could lead to a mass exodus of wealthy individuals from the UK, with alternative financial hubs such as Dubai, Singapore, Hong Kong, Switzerland, and Italy likely to benefit from this migration.