How many non-domiciled taxpayers left the UK before the tax reforms?

Over 1,000 non-domiciled taxpayers reportedly left the UK before the new tax reforms were implemented. The total number of non-doms decreased by 1,200 in the final year prior to the change, from 83,100 to 81,900.

What was the financial contribution of non-doms to the UK economy?

Non-domiciled taxpayers contributed a record £9.7 billion in capital gains, employment, and income taxes during the period, representing a 9 per cent increase and the highest total since 2008.

How did the UK tax changes affect the London prime property market?

In the 12 months following the tax changes, property transactions in prime central London dropped by over 32 per cent, and prices fell by 7 per cent. However, the super-prime segment (properties above £30 million) saw continued strong activity.

Were super-prime property sales in London impacted by the non-dom exodus?

Despite the overall downturn in the prime London market, sales of super-prime properties (those over £15 million and especially over £30 million) remained resilient. Sales of homes over £15 million increased by 78 per cent year-on-year, totalling £1.24 billion.

What is the new tax system replacing non-dom status in the UK?

The non-dom status has been replaced by a residence-based tax regime. Under this system, new arrivals to the UK are exempt from tax on foreign income and gains for the first four years of their tax residency, after which they are taxed like ordinary UK residents.

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Policy·31 July 2026

UK Non-Dom Exodus Shifts Wealth, Super-Prime London Property Remains Resilient

Over 1,000 non-domiciled taxpayers reportedly left the UK before new tax reforms took effect, impacting the broader prime London property market but seeing continued strength in the super-prime segment.

The United Kingdom experienced an exodus of more than 1,000 non-domiciled taxpayers prior to the implementation of new tax reforms, which abolished the non-dom status. Statistics reveal a 1,200 decrease in non-dom taxpayers in the final year before the change, bringing the total down from 83,100 to 81,900. This follows predictions that thousands of wealthy individuals would relocate to avoid the new tax regime, which was initially proposed by the Labour Party and subsequently adopted by the Conservative government.

The number of non-doms leaving the UK increased to approximately 9,000 in the 2024-2025 tax year, up from 11,200 the previous year, while newly arriving non-doms also saw a decline. These individuals, ranging from entrepreneurs to City professionals, contributed a record £9.7 billion in various taxes during the period, marking a 9 per cent increase. The government hopes the new residence-based tax system, which targets overseas wealth, will generate an additional £33 billion in taxes, though this figure is contested by several think tanks.

The ramifications for the UK's property market have begun to emerge. In the 12 months following the tax changes, prime central London property transactions reportedly fell by over 32 per cent, with prices decreasing by 7 per cent. However, this downturn was not uniform across all price points. While activity in most segments was down compared to previous years, sales of properties valued at £30 million and above showed remarkable resilience and even growth.

Analysis by Beauchamp Estates indicates that 34 homes sold for more than £15 million in the first half of the year, collectively generating £1.24 billion in transactions — a 78 per cent increase year-on-year. Notable sales include a Chelsea mansion for £270 million and The Holme in Regent’s Park for £195 million. Experts suggest that individuals with extreme wealth, typically possessing a net worth exceeding £100 million, are less affected by domestic tax increases and will continue to purchase properties in preferred locations like London, often as part of a multi-city portfolio.

Frequently asked

Questions, answered

How many non-domiciled taxpayers left the UK before the tax reforms?: Over 1,000 non-domiciled taxpayers reportedly left the UK before the new tax reforms were implemented. The total number of non-doms decreased by 1,200 in the final year prior to the change, from 83,100 to 81,900.
What was the financial contribution of non-doms to the UK economy?: Non-domiciled taxpayers contributed a record £9.7 billion in capital gains, employment, and income taxes during the period, representing a 9 per cent increase and the highest total since 2008.
How did the UK tax changes affect the London prime property market?: In the 12 months following the tax changes, property transactions in prime central London dropped by over 32 per cent, and prices fell by 7 per cent. However, the super-prime segment (properties above £30 million) saw continued strong activity.
Were super-prime property sales in London impacted by the non-dom exodus?: Despite the overall downturn in the prime London market, sales of super-prime properties (those over £15 million and especially over £30 million) remained resilient. Sales of homes over £15 million increased by 78 per cent year-on-year, totalling £1.24 billion.
What is the new tax system replacing non-dom status in the UK?: The non-dom status has been replaced by a residence-based tax regime. Under this system, new arrivals to the UK are exempt from tax on foreign income and gains for the first four years of their tax residency, after which they are taxed like ordinary UK residents.

Reported by

The National — Property

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This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.

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