---
title: "Non Dom Tax Changes Cost Treasury £400 Million in Lost Stamp Duty Revenue"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2025-06-23T08:05:16+00:00"
modified: "2025-06-23T08:05:16+00:00"
date: 2025-06-23
canonical: "https://stockmark.it/non-dom-tax-changes-cost-treasury-400-million-in-lost-stamp-duty-revenue/"
category: "Property"
categories: ["Property", "Tax"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2025/06/stencil.default-2025-06-23T090442.038.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Non Dom Tax Changes Cost Treasury £400 Million in Lost Stamp Duty Revenue

**Published:** June 23, 2025
**Author:** Stockmark.IT Website
**Categories:** Property, Tax
**Featured image:** ![Luxury home with classic car parked outside. Impact of Non-Dom tax changes. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/2025/06/stencil.default-2025-06-23T090442.038.jpg?fit=1200%2C800&quality=89&ssl=1)

---

Fresh research from Knight Frank reveals the abolition of the non-dom regime has resulted in significant losses to government property tax revenue. The estate agent’s analysis indicates that declining sales of luxury homes valued at £5 million or above in London between March 2024 and May 2025 have led to a £401 million reduction in stamp duty receipts.

The findings stem from prime property transactions falling below anticipated levels during this 14-month period. May 2025 alone witnessed a 14% year-on-year decline in prime residential property sales in London, according to combined data from Knight Frank and property data specialist LonRes.

The prime property market, traditionally dominated by wealthy non-dom buyers, has experienced a notable downturn as tax system modifications have prompted potential investors to look elsewhere. The Labour government is reportedly contemplating reversing changes to the non-dom regime that eliminated offshore trust protections, which previously sheltered assets from UK inheritance tax.

Since April’s removal of this tax shelter, wealthy individuals have increasingly relocated to more tax-friendly jurisdictions such as Italy and the UAE. The Italian government now offers new investors a favourable flat €200,000 tax on foreign income and assets over 15 years, with inheritance tax exemptions included.

Treasury projections suggested the non-dom status removal would generate £34 billion by 2029-30. However, economists at the Centre for Economics and Business Research suggest these gains could be neutralised if 25% of non-doms exit the UK. The Treasury maintains that Britain remains an attractive destination, highlighting lower capital gains tax rates compared to other G7 European nations.

The government’s stance reflects a delicate balance between maintaining international competitiveness and addressing tax system inequalities. As global wealth centres compete for high-net-worth individuals, the UK’s policy shifts continue to shape investment patterns in the luxury property sector.

---

**Original URL:** https://stockmark.it/non-dom-tax-changes-cost-treasury-400-million-in-lost-stamp-duty-revenue/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*