Bankers lobby Reeves on non-dom reform

City bankers have lobbied Shadow Chancellor Rachel Reeves over Labour’s planned non-dom reforms, warning of a continuing exodus of top taxpayers. Legal expert Robert Brodrick, partner at Payne Hicks Beach, said "A month ago, Rachel Reeves purported to extend an olive branch to the non-dom community in an attempt to reassure the City in the face of record outflow of the UK’s highest taxpayers. Unfortunately these appear to have been hollow words and with only just over a month to go until the new rules come in, Reeves hasn’t done anything to stem the tide. Inheritance Tax exposure remains the main concern with the risk of a complicated (and potentially indefinite) tax regime for trusts created by someone who is, or becomes, a long-term UK resident even if all of the beneficiaries are outside the UK.”

Despite reassurances, uncertainty remains over how trusts will be affected under Labour’s proposed changes, with inheritance tax exposure being the main issue. With only weeks before the reforms take effect, calls for clarity continue.