Shadow business secretary Kevin Hollinrake has called for his party to re-think its position on non-dom status – in an apparent swipe at Jeremy Hunt.
As Chancellor, Hunt announced earlier this year that the status of ‘non-domiciled’ UK resident – with its tax advantages – would be abolished.
But speaking ahead of the Conservative Party conference, Hollinrake said: ‘I’m not sure we got it right.’
Re-think: Shadow business secretary Kevin Hollinrake has called for his party to re-think its position on non-dom status
The comments are likely to be well received in the City, where many are worried about wealth creators fleeing the UK.
But the remarks may be seized on by Labour – which has long called for the status to be abolished – as evidence that the Tories are in hock to the super-rich.
It comes amid speculation that Chancellor Rachel Reeves may be ready to abandon an even tougher crackdown on non-doms.
Hollinrake told The Mail on Sunday: ‘I think it’s something we should look at. We don’t want people deterred from coming here and investing in the UK.’
Non-dom status is a concession for those who are tax residents of the UK but whose main ‘domicile’ – the place they regard as their permanent home – is abroad.
It enables them to avoid paying UK tax on income or capital gains they have made overseas for 15 years, provided that that money is not brought into the country.
It is due to be abolished in April next year.
Former Bank of England chief economist Andy Haldane said last week that a crackdown risked deterring ‘the flow of finance we need to get growth going’.
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