Rachel Reeves to soften non-dom tax changes

The size of the change to the Temporary Repatriation Facility, a three-year scheme to help ex non-doms bring their assets to the UK at a 12% tax rate, was described as a “tweak” that would not be expected to significantly change the money raised from the overall policy.

Downing Street said the tweaks, which will be made through amendments to the Finance Bill, did not change the government’s overall approach “to replacing the outdated non-dom tax regime”.

The prime minister’s official spokesman said the new system “addresses unfairness in our tax system, attracts the best talent and investment to the UK and ensures that everyone who is a long-term resident of the UK pays their tax here”.

The policy is expected to raise £12.7bn over the next five years, according to the government’s official economic forecaster.

The chancellor chose to announce the relaxation in Davos as part of a multipronged effort to show willingness to change policy to help economic growth.

On Wednesday she also set out changes to visas to allow top talent in Artificial Intelligence (AI) and medicines research to come to the UK.

Some in industry feel there is an opportunity for the UK to poach top talent in science and pharmaceuticals from the US under the new administration, and in AI from European Union.