Nigel Farage: Rich Can Pay £250k for Non-Dom Status — Money to Go to Poor

Byline: London, 23 June 2025

Reform UK leader Nigel Farage has announced that his party would bring back the controversial non-domicile (non-dom) tax status for wealthy individuals — but with a twist. Under the proposed policy, high-net-worth individuals would be allowed to pay a fixed annual fee of £250,000 to retain their non-dom privileges, with the entire sum redirected to support Britain’s lowest-paid workers. Speaking at a campaign event on Monday, Farage said the plan would generate substantial revenue while encouraging global talent and investment to remain in the UK. “We’re not just talking about fairness; we’re talking about common sense,” Farage said. “If wealthy people want the benefits of living here without paying full UK tax, they should pay for that privilege — and that money should go directly to those who need it most: our poorest workers.”

The proposal marks a sharp contrast to Labour’s recent decision to scrap the non-dom tax status altogether — a move critics said could drive wealth and investment out of the country. Reform UK’s policy, however, seeks to turn the scheme into a mechanism of redistribution.

Under the plan, each wealthy individual who opts into the £250,000 scheme would effectively be funding support payments or wage top-ups for lower-income households. Farage claimed the policy could raise “billions” if structured correctly and suggested the funds could be used to cut National Insurance contributions for the working poor or boost Universal Credit. The non-dom status, which exempts some foreign nationals living in the UK from paying tax on overseas income, has long been a lightning rod for political debate. Farage defended the principle of allowing flexibility for international earners but insisted that the days of tax-free benefits for the rich must be over. “It’s about time the system worked for ordinary people,” he added.

Economists are divided on the idea. Some argue it could provide a creative source of revenue, while others warn it may invite further inequality by entrenching a system where the wealthy can "buy" their tax privileges. Labour branded the proposal “an insult to working people,” while the Conservatives have so far declined to comment on Reform UK’s announcement.

With the general election looming, Reform UK’s radical pitch appears aimed at voters frustrated with both major parties. Farage’s policy rollout is expected to be a central part of Reform UK’s economic platform in the coming weeks.