Labour plans to abolish non-dom tax status to help cut NHS waiting lists

Labour has pledged to abolish non-dom tax status, so as to invest an extra £1.1bn to cut NHS waiting lists and to help get people back to work.

Shadow chancellor Rachel Reeves (pictured) told the BBC: “Labour have committed to getting rid of the non-dom status. 

“If you make your home in Britain you should pay your taxes here and under Labour you will. 

“We will put that money into creating every year an additional two million appointments, scans and operations in our National Health Service so that we can get those waiting lists down, get people the treatment they need, and get them in many cases back into work.” 

Under UK law, non-domiciled UK residents who have their permanent home outside the UK may not have to pay UK tax on foreign income, according to Gov.uk.

But that is not the case for all non-doms, as some may need to pay UK tax on the income or gains they bring to the UK, if their income is £2,000 or more.

Others may claim the remittance basis, where they may need to pay an annual charge of £30,000 if they have been in the UK for at least seven of the previous nine tax years, or £60,000 if they have been in the UK for at least 12 of the previous 14 tax years, Gov.uk says.

“Claiming the remittance basis is complicated,” Gov.uk said.

Meanwhile, since January waiting lists have risen by 500,000 to a record 7.8 million, Labour says. 

Health & Protection reported earlier this month that the waiting list hit a new high of 7.77 million people in September. It is on track to surpass 8.0 million people by August next year, according to the Health Foundation.

The Labour party has also pledged to provide an extra two million operations, scans and appointments a year by paying staff extra to run evening and weekend clinics. 

The party reiterated the strategy via a post on X (formerly Twitter).

“To cut NHS waiting lists, Labour will get an extra two million appointments done on evenings and weekends and provide the cutting-edge technology staff need,” Labour said.  

And as a part of its plan, to help people get back to work, Labour says it will recruit 8,500 more mental health professionals and introduce changes to incapacity benefits to encourage disabled people and people with health conditions to try work without fear of losing their income or having to be reassessed if the job does not work out. 

It also says it will introduce a new statutory duty that would require job centres to work in partnership with organisations including the NHS to tackle the root causes of worklessness. 

 

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