The number of wealthy individuals who are UK-resident but not UK-domiciled for tax purposes has dropped to a record low, according to HMRC figures.
In 2017/18, around 78,300 individuals claimed non-domiciled taxpayer status on their self-assessment returns, down from 90,500 in 2016/17.
HMRC said the decrease could be equally explained by individuals switching to domiciled status and continuing to pay tax in the UK, and others leaving the UK tax system.
Non-domiciled status can be claimed by UK residents who have their permanent home, or domicile, outside of the UK.
Those with this status do not have to pay UK tax on foreign income or gains of less than £2,000 a year, unless the money is brought into the UK.
Those with foreign income of £2,000 or more, or income they bring to the UK, must report it through self-assessment and either pay UK tax or claim the remittance basis.
Under the remittance basis, individuals only have to pay UK tax on the income they bring into the country, but they can lose certain tax-free allowances.
They may also be required to pay an annual charge of either £30,000 or £60,000, depending on how long they have been resident in the UK.
Payments from this levy totalled £315 million in 2016/17.
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