Before the general election in July, Labor pledged to toughen up existing Conservative plans to abolish the tax status of non-domists.
In March 2024, Jeremy Hunt, then Conservative chancellor, announced that the non-dom tax regime would be phased out.
Under Mr Hunt's plans, people who moved to the UK from April 2025 would not have to pay tax on money earned abroad for the first four years.
After this period, if they continued to live in the UK, they would pay the same tax as everyone else.
People who currently have nom-dom status would benefit from a two-year transition period, during which they would be encouraged to bring their foreign wealth into the UK system.
The former chancellor said scrapping the no-dom rules would raise £2.7 billion a year by 2028-29.
Labor said it would go further and the budget confirmed the government would abolish non-dom status from April 2025, replacing it with a residency-based regime.
It will also integrate foreign income into the inheritance tax system, but will extend by two to three years the transition period necessary for people wishing to repatriate money to the country.
Rachel Reeves said the package would raise £12.7 billion over the next five years.
