What Is ‘Non-Dom’ Tax Status and Why Is The UK Scrapping It?

The term is short for non-domiciled resident, and refers to a person who lives in the UK but keeps their permanent, registered place of residence abroad.

Photographer: Chris Ratcliffe/Bloomberg
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The UK government is replacing the “non-dom” system that allows wealthy foreigners to pay less tax with a new arrangement based on residency, Chancellor of the Exchequer Jeremy Hunt announced in his budget statement on Wednesday.

So what is non-dom status and why is it changing?