At least 10 per cent of non-doms have already left the UK, with “significantly more” set to depart in the coming years, according to modelling in a report by an ex-Treasury economist.

The report, which analysed data from Henley & Partners on the reduction in London's millionaire population, estimated that 26,000 non-doms left the UK in 2024.

Written by former Treasury economist and CW Economics founder, Chris Walker, the analysis looked at the origins of the policy to abolish non-dom status.

Walker highlighted that the UK had tightened its regulations around non-dom status while other countries, such as Italy and Greece, had loosened theirs.

The report identified several potential solutions to reduce the rate of non-dom departures from the UK.

These included extending the Temporary Repatriation Facility to four years for UK non-doms currently resident.

This could also be extended to apply to newly arriving non-doms in their first four years resident in the UK, and removing the worldwide basis for inheritance tax for those resident in the UK for 10 or more years of the past 20 years.

It also called for the reinstation of protections around Transfer of Assets Abroad legislation to make sure that profits from foreign companies cannot be taxed as both personal income and on distribution.

Commenting on the report's findings, Walker said: "This shows how careful governments have to be in introducing major tax changes.

"The unintended consequences have only been exacerbated by the fact that other countries have since introduced measures to attract British non-doms to live and work there.”

Land of Opportunity founder, Andrew Barclay, who commissioned the report, added: “We commissioned this report to gain a better understanding of how this policy evolved, but more importantly, to show the government that it is not too late to change course.

“If 10 per cent of non-doms have already left the UK, that suggests the final numbers will be huge.

“There are however measures that could be introduced, even at this late stage, that could attract foreign investors and entrepreneurs to live and work in Britain - and to retain those non doms who might want to stay.

“If the UK is going to prosper, we need to find a way to make it economically worthwhile for those outside our country to come here."

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