Chancellor of the Exchequer Jeremy Hunt has instructed HM Treasury to carry out a review of the non-dom tax status.
The Treasury confirmed to International Adviser it is assessing the impact of closing the non-dom regime, but it declined to comment further on the matter.
Hunt revealed the move when questioned by the Treasury Select Committee on 23 November 2022, following backlash from the lack of any mention of the system in his Autumn Statement on 17 November.
Under the non-dom status, wealthy people can reside in the UK but not pay tax on their offshore income.
Labour leader Kier Starmer attacked prime minister Rishi Sunak for keeping the non-dom regime, claiming that taxing those who take advantage of the “loophole” could raise £3.6bn ($4.3bn, €4.1bn) per year.
But Hunt rebuked Starmer’s claim, as he claimed he has not received official Treasury estimates just yet, but added that non-doms pay around £8bn in tax a year already.
Sunak refused to consider scrapping the non-dom tax status during Prime Minister’s Questions in the House of Commons on 23 November, saying it would cost too much money to change the rules.
The newly-appointed prime minister came under fire in April 2022, after it was revealed that his wife, Akshata Murty, had non-dom status, which she then later gave up.