Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) the abolition of non-dom status and (b) increases in levels of taxation on the retention of international shipowners in the UK; what estimate she has made of the number of shipowning individuals or companies that (i) have relocated and (ii) are considering relocating as a result of these changes; and what steps the Government is taking to ensure that the UK remains an attractive base for global shipping and maritime businesses.

The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth. The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair. The reforms establish a tax regime for new residents which is more attractive to new arrivals than the current rules.

The introduction of a residence-based tax system is expected to raise £39.5bn by 2030-31 (as costed by the OBR last autumn), and the OBR have said that there is no firm evidence to change the estimated impact of the reforms on migration. As set out at Budget 2025, the Chancellor has been clear that she will continue to assess the regime to ensure it strikes the right balance, including on competitiveness.

The Government published a Tax Information and Impact Note for this policy on 30 October 2024, which can be found here: https://www.gov.uk/government/publications/tax-changes-for-non-uk-domiciled-individuals/reforming-the-taxation-of-non-uk-domiciled-individuals

Regarding global shipping and maritime businesses, the Government is maintaining the Tonnage Tax regime, introduced in 2000 to improve the competitiveness of the UK’s shipping industry. This is designed to make it easier for shipping companies to move to the UK and ensures they are not disadvantaged compared with firms operating in other countries.