Tories rethink non-mainstream: Shadow business secretary says crackdown could hit UK investment

Shadow business secretary Kevin Hollinrake has called on his party to reconsider its position on non-dominant status, in an apparent attack on Jeremy Hunt.

As Chancellor, Hunt announced earlier this year that ‘non-domiciled’ resident status in the UK – with its tax advantages – would be abolished.

But speaking before the Conservative Party conference, Hollinrake said: “I’m not sure we’ve got it right.”

The comments are likely to be welcomed in the City, where many are concerned about the flight of wealth creators from the UK.

But the comments could be seized upon by the Labor Party (which has long called for the status to be abolished) as evidence that the Conservatives are bent on the super-rich.

It comes amid speculation that Chancellor Rachel Reeves may be willing to abandon an even tougher crackdown on non-dominants.

Hollinrake told The Mail on Sunday: “I think it’s something we should consider.” “We don’t want people to be deterred from coming here and investing in the UK.”

Non-dom status is a concession for those who are UK tax residents but whose main ‘domicile’ – the place they consider their permanent home – is abroad.

It allows them to avoid paying tax in the UK on income or capital gains they have earned abroad for 15 years, as long as that money does not come into the country.

It is scheduled to be abolished in April next year.

Former Bank of England chief economist Andy Haldane said last week that a crackdown risked deterring “the flow of finance we need to kick-start growth”.