In April, the United Kingdom ended a tax privilege that had existed for more than two centuries: the non-domiciled (or "non-dom") status. Seen as a passport for tax optimization, this status applied to wealthy individuals living in the UK without being officially domiciled there: they were exempt from taxes on income earned abroad, provided those earnings were not repatriated to the UK. The "non-dom" status had helped make London a top destination for the global financial elite. While the British government hopes this reform will generate new tax revenue, it could also trigger an exodus of capital and talent of all kinds. In the contest to attract mobile wealth, and in a highly competitive environment, France has a valuable card to play.
In 2023, there were nearly 74,000 beneficiaries of the "non-dom" status. This represented a considerable source of indirect tax revenue through luxury consumption, real estate investment and tuition fees paid to schools and universities. Their contribution to London's ecosystem thus went far beyond just income taxes. To soften the immediate impact of abolishing the status, the reform introduced a new transitional regime: a four-year exemption on foreign income for new arrivals, regardless of their domicile status. After this period, residents will be taxed on all global income. The British government is counting on an additional £3.2 billion (about €3.7 billion) in annual tax revenue.
But the situation is complex, and the forecasts are not optimistic. The Adam Smith Institute has predicted that up to 30% of current "non-doms" could leave the country, causing a loss of human and financial capital that would be hard to offset. Meanwhile, the Henley Private Wealth Migration Report 2025 estimates that 16,500 millionaires could leave the UK in 2025. The situation is becoming increasingly serious, especially since Brexit, and London has lost a spot each year in the Forbes ranking of cities with the most billionaires in the world.
You have 58.15% of this article left to read. The rest is for subscribers only.