Chancellor faces U-turn on tax rules after non-doms take fright

Mounting evidence that super-rich non-doms are quitting the UK after changes to how they are taxed may push Rachel Reeves into an embarrassing U-turn.

- Matthew Bishop

The chancellor had hoped that scrapping old rules that let wealthy people from abroad live in the UK without paying taxes on their overseas income would generate revenue for the Treasury and satisfy the “bash the rich” instincts of the party's base.

Instead, it could end up lowering the tax take while damaging Britain’s image with the sort of internationally mobile investors Labour arguably needs to deliver faster economic growth.