While Murthy is legally entitled to claim non-dom status, her use of the tax arrangements sparked a public outcry.Adding to the political backlash, were revelations that Sunak’s predecessor and current cabinet minister Sajid Javid, who is British, claimed non-dom status when he was an investment banker overseas to avoid paying taxes in Britain while he worked abroad.
“We would have rules for people who are temporarily in the UK for a short period of time, in Germany and in Canada, that is six months, in Japan, it’s five years,” Reeves told Britain’s Sky News.“We’ll consult to get that right but I’m very clear, the non-dom status that exists today will not exist with a Labour government.Reeves rejected suggestions that restricting the tax exemption would deter entrepreneurs from relocating to London.
Earlier this month, a study by the London School of Economics and University of Warwick found that one in five top-earning bankers claim non-dom status and that it was overwhelmingly used by the rich with the fastest take-up by those relocating from China and India.
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