Non-domicile Status

Debate between Lord Mountevans and Lord Livermore

Tuesday 28th January 2025 Lords Chamber

[Lord Livermore (Lab)]

I am very grateful to the noble Baroness for her question. To be clear, we are not dropping any reforms; we are making sure that they are working as intended, and we are trying to make the system as simple as possible to use so that those people are able to come to our country and invest in it. The noble Baroness asked about double taxation conventions. The Chancellor has been very clear that the reforms to the taxation of non-domiciled individuals do not affect the UK’s existing double taxation conventions, and we do not intend to change those treaties.

[Lord Mountevans (CB)]

My Lords, the legislation of successive Governments has resulted in the closure or downsizing of many international ship owners’ offices in London and the UK. This is a very important business; Britain has a world-leading maritime professional business services sector. Will the Minister ensure that all consideration is given to increasing the domicile arrangements so that they are more in line with Europe, so that the principal—himself or herself—who very often takes the very top decisions, could spend more of their time here?

[Lord Livermore (Lab)]

I am grateful to the noble Lord, and I am of course happy to look at that. Obviously, we keep this policy under review and will continue to engage with stakeholders to ensure that the system operates as it should. It is important to remember that the basis of this policy is ensuring that everyone who makes their home in the UK should pay their taxes here; that is absolutely the right thing to do. We want to ensure that our system remains internationally competitive, and the system that we are introducing as a result of these reforms is far more internationally competitive than the system that it replaces.