Nick Millican on London´s Non-Dom Tax Status

Nick Millican explains about the UK’s housing market current trends. He explains how the UK has special tax rules for non-domicile people residing in its borders:

If you live here as a non-domiciled person (non-dom), you may use another country as your primary residence for tax purposes, though you must still pay taxes on income earned in the UK. This is a great arrangement for international citizens. And this is when real estate specialists such as Nick Millican come in to best guide their clients when making this kind of decisions within the property purchase process.

However, with the 2024 Spring Budget, Chancellor Jeremy Hunt may soon overturn the current non-dom rules, which has London real estate agents worried about what that means for the city’s market. Nick Millican explains that this is because London has a lot of international investors who currently benefit from non-dom tax status.

But, Nick Millican adds, changing the rules could encourage them to take their business elsewhere. This, both by making foreign investors feel unwelcome with the rule changes, and by making other places seem like a better deal in comparison to London.

It wouldn’t be merely the real estate market affected by non-domiciled persons pulling out of London. However, the real estate market would naturally take the downstream effects of London’s general economy being dealt such a blow, Nick Millican adds. Property owners in London have already been losing value on their real estate, and this move, if Hunt carries it out, is expected to lower that value further.