As had been trailed in many of the newspapers in the week leading up to the Budget,
the contentious ‘non-dom’ scheme will be scrapped.

Mirroring what has been one of the higher profile policies of the Labour Party, Mr Hunt said the tax breaks for wealthy foreign residents
in the UK will be abolished and replaced with a new scheme.

So-called non-doms are UK residents but not domiciled here for tax purposes.

Mr Hunt said the Government would “introduce a system which is both fairer and remains competitive with other countries.”

“The Government will abolish the current tax system for non-doms, get rid of the outdated concept of domicile and the remittance basis in the
tax system, and replace it with a modern, simpler and fairer residency-based system,” he told Parliament.

The plan is that, from April 2025, new arrivals to the UK will not be required to pay any tax on foreign income and gains for their first four
years of UK residency. Those who stay after four years will then pay the same tax as other UK residents.

The Treasury described the new scheme as the 4-year foreign income and gains (FIG) regime.

The Treasury stated: “Individuals who on 6 April 2025 have been tax resident in the UK for less than 4 years (after 10 years of non-UK tax residence)
will be able to use this new regime for any tax year of UK residence in the remainder of those 4 years.”

Officials also revealed (in the documents released after the Budget speech) that Overseas Workday Relief for the first 3 tax years of UK residence will
be “retained and simplified”.