As expected, the UK will look to close exemptions that allow non-domiciled residents to pay little or no tax on money earned abroad.

According to a press release on the budget delivered by Chancellor of the Exchequer Rachel Reeves, a new residence-based regime will replace the current non-dom regime from April 2025. Reforms to the non-dom regime aim to raise a total of 12.7 billion British pounds ($16.6 billion) over the next five years.

Many advisors have flagged the move as a likely trigger for the exodus of wealthy individuals. Alternative hubs cited as beneficiaries include Dubai, Singapore, Hong Kong, Switzerland and Italy.