The proposal would allow new or returning non-doms to pay a one-off fee of £250,000 to gain a stable, indefinite tax regime on offshore income and a 20-year inheritance tax shield.

Farage claims the proceeds from this “Britannia Card” scheme, which the party has dubbed a “Robin Hood-style” initiative, would directly benefit the lowest-earning 10% of full-time workers. Reform UK estimates that if 6,000 non-doms participate, generating £1.5 billion, around 2.5 million workers earning under £23,000 annually would receive £600 each. The party asserts this would forge a “transparent link” between the UK’s richest and poorest, rebuilding a “social contract”, Financial Times reports.

This policy comes after the abolition of the non-dom regime by the previous Conservative government, with Labour also tightening the rules. Farage argues that these changes have led to a “rapid exodus” of high-spending, high tax-paying residents, which he believes is “catastrophic” for the country. He suggests that attracting non-doms back would significantly increase spending and tax revenue in the UK, far beyond the initial £250,000 fee, citing examples like stamp duty on luxury properties and VAT.

However, tax expert Dan Neidle has challenged Reform UK’s claims, estimating the policy would amount to a tax cut for the super-wealthy, costing the Exchequer approximately £7 billion annually, or £34 billion over five years. Neidle also suggests that uptake would likely be limited due to concerns that a future government might reverse the policy, undermining the promise of a long-term exemption.

Labour has also criticised the proposal, arguing that non-doms would only pay the fee if it were less than their current tax liabilities, ultimately reducing overall tax revenues. They claim the policy is even more generous than the Conservatives’ previous non-dom regime, which charged long-term non-doms £30,000 per year, compared to Reform’s effective £25,000 annual fee.