Australians moving to Britain could pay Australian income tax under UK Labor


Shadow Chancellor of the Exchequer Rachel Reeves has said British workers are seeing their taxes rise “more and more” while wealthy foreigners rely on an outdated tax exemption to avoid paying their fair share.

“We would have rules for people who are temporarily staying in the UK for a short period, in Germany and Canada, that is six months, in Japan, it is five years,” Reeves told the British Sky News.

Shadow Chancellor of the Exchequer Rachel Reeves.Credit:press association

“We will consult to get it right, but I am very clear the no-dom status that exists today will not exist under a Labor government.

“If you make Britain your home, you should be paying your taxes like everyone else,” she said.

Reeves rejected suggestions that restricting the tax exemption would deter entrepreneurs from moving to London.


“In the United States, you pay full taxes from day one, and no one would suggest that the United States doesn’t welcome investment and entrepreneurs,” she said.

Labor said around 75,000 people in Britain are currently claiming the tax exemption and 2,000 of them have opted to pay a one-off fee worth £30,000 ($53,300) which enable them to continue to protect their overseas earnings from UK tax collectors for another eight years.

Earlier this month, a study by the London School of Economics and the University of Warwick found that one in five top-earning bankers claim non-dom status and have been heavily used by affluent with the fastest adoption by those moving from China. and India.

The study found that most non-doms live in London and home counties and in London they tend to live in the more expensive areas. More than one in 10 residents of Kensington and the cities of London and Westminster have claimed non-dom status at some point.

Reeves’ proposal is not new. Former British Prime Minister Gordon Brown proposed a similar plan when he was Chancellor of the Exchequer, but dropped the idea.

Former leaders Ed Miliband and Jeremy Corbyn have both pledged to go further and completely abolish the tax status of foreigners.

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