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UK to Overhaul Non-Dom Tax Regime: Major Reforms Expected to Impact Revenue and Migration

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UK to Overhaul Non-Dom Tax Regime

The UK government is set to implement significant changes to its non-domiciled (non-dom) tax system, effective from April 2025. The proposed reforms aim to replace the current system, which allows non-doms to avoid tax on overseas income for up to 15 years, with a new regime that offers this benefit for only four years. This initiative is part of Labour’s broader strategy to address perceived inequalities within the tax system.

Initially, the Office for Budget Responsibility (OBR) projected that the overhaul would generate an additional £3 billion annually. However, the OBR has since acknowledged considerable uncertainty in these projections due to unpredictable responses from non-doms to the changes.

A recent survey by Oxford Economics suggests that the non-dom population in the UK could decrease by as much as 32% due to the new rules, potentially leading to a £0.9 billion reduction in tax revenue by 2029-30. The study, which included responses from 73 non-doms and 42 tax advisers representing a total of 952 non-dom clients, revealed that 63% of non-doms are either planning or considering leaving the UK within the next two years.

Chris Etherington of RSM has expressed concerns regarding the lack of comprehensive research behind the proposed reforms. He warned, “The Chancellor could find her financial forecasts are built on sand if we see large numbers of non-doms leaving the UK. The proposals have arguably been driven more by politics than economics.”

The survey also highlighted the substantial investments non-doms hold in the UK, totaling £8.4 billion. If they were to leave, 96% of these individuals indicated they would significantly reduce their investments in the UK. Additionally, 83% of non-doms cited changes to inheritance tax as a major concern influencing their decision to emigrate.

Under the new rules, wealthy foreigners will be subject to inheritance tax on their worldwide assets after 10 years of UK residence. The reforms will also remove the previous exemption on foreign assets held in trust. Oxford Economics warns that these changes could trigger a “large migration” of non-doms, potentially impacting both the UK economy and tax revenues.

In defense of the reforms, an HM Treasury spokesperson stated, “We are committed to addressing unfairness in the tax system. That’s why we are removing the outdated non-dom tax regime and replacing it with a new, internationally competitive, residence-based regime focused on attracting the best talent and investment to the UK.”

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One in Five UK Workers Fear Speaking Up About Mental Health, Study Finds

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More than one in five UK employees feel unable to discuss their mental health struggles in the workplace, according to new research highlighting persistent stigma and a lack of employer support.

The study, based on data from the Health and Safety Executive (HSE) and the Chartered Institute of Personnel and Development (CIPD), reveals that 7.5 million workers experience anxiety, depression, or stress caused or worsened by their jobs. Despite these challenges, they do not feel safe disclosing their difficulties to their employers.

A significant gender divide emerged in the findings, with 3.9 million men reporting workplace-related mental health issues without seeking support. This figure is 8% higher than the 3.5 million women who experienced similar struggles, suggesting that men may feel a greater reluctance to ask for help.

Industry-Wide Disparities

The research also identified stark differences across industries. The automotive sector had the highest proportion of employees suffering in silence, with 1.13 million workers reporting unaddressed mental health concerns. This was closely followed by the health and social care sector, where 1.11 million employees kept their struggles private.

In contrast, the arts, entertainment, and recreation industry recorded the lowest number of workers suffering unseen, at 264,000. The financial and insurance sector followed closely behind, with 256,000 employees reluctant to speak up about their mental health challenges.

Calls for Workplace Change

Richard Stockley, Managing Director at RRC International, which conducted the research, described the findings as “shocking.” He emphasized that while progress has been made in addressing mental health stigma, many workers still do not feel comfortable discussing their struggles.

“Our research shines a very necessary light on the issue, helping employers better understand just how widespread mental health challenges are,” Stockley said. “Change begins in the workplace, and with the right culture and training, employers can ensure their businesses are safe spaces for all who work there.”

The findings underscore the need for businesses to foster open discussions about mental health and provide proper support structures for employees. Experts suggest that implementing mental health training for managers, offering confidential support services, and promoting an inclusive workplace culture could help break down barriers and encourage workers to seek help without fear of stigma or repercussions.

As workplace mental health remains a growing concern, the study serves as a wake-up call for employers to take meaningful steps toward improving employee well-being and creating an environment where mental health can be discussed openly and without fear.

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Central Asian Leaders Meet to Discuss Regional Stability Amid Investment Concerns

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In January, the prime ministers of Kyrgyzstan, Tajikistan, and Uzbekistan held a landmark meeting in the Ferghana Valley, aiming to foster regional cooperation and promote economic stability. The summit, held at the shared borders of the three countries, underscored their commitment to addressing long-standing issues such as border demarcation and resource management, with a focus on collaborative development.

The discussions come at a time of growing economic optimism in the region, as Uzbekistan’s Central Bank reported a significant 30% year-on-year increase in international remittances in 2024. Total remittances amounted to $14.8 billion, representing 12.9% of the country’s GDP. The United Kingdom, contributing $135 million, was among the key players, highlighting a rising interest in the region from British investors.

The Ferghana Valley, a vital agricultural hub positioned at the crossroads of important trade routes, offers vast potential for economic growth. Political agreements resulting from the summit aim to pave the way for increased investment, particularly in sectors such as hydropower, infrastructure, and construction. However, the case of Ulugbek Shadmanov, one of Uzbekistan’s leading entrepreneurs, casts a shadow over the country’s investment climate and underscores the importance of upholding the rule of law.

Shadmanov’s Arrest Raises Concerns for Investors

Shadmanov, the owner of United Cement Group (UCG), was arrested in Dubai in December 2024 and extradited to Uzbekistan, where he faces charges of illegal border crossing. These charges are widely viewed as politically motivated, raising alarms among the business community. His lawyer, Mark Agnifilo, has criticized the lack of legal transparency, pointing to violations of international norms and denial of legal counsel.

An independent investigation, led by human rights advocate Radha Stirling, has uncovered allegations of a staged assassination attempt aimed at discrediting Shadmanov, involving former Uzbek official Komil Alamjonov and several Russia-linked businessmen. Additionally, Shadmanov is accused of violating sanctions by allegedly exporting cement to Russia—an accusation that remains unsubstantiated, given the logistical challenges of such exports.

These developments have raised doubts about the reliability of Uzbekistan’s legal and political environment, which could discourage foreign investment in the region.

A Promising Future for the Ferghana Valley

Despite these challenges, the recent summit among the Central Asian leaders signals a positive outlook for the Ferghana Valley. Addressing key issues such as water resources and border disputes lays the foundation for long-term stability and growth. The region’s economic potential is significant, with remittance inflows continuing to rise, particularly from Russia, Kazakhstan, and the United States.

For the region to realize its full potential, however, it will need to ensure legal protections for entrepreneurs and establish transparent business practices. The Shadmanov case highlights the risks that political instability and a lack of judicial integrity pose to investors.

Nevertheless, the development of key infrastructure projects and the expansion of hydropower capacity offer hope for transforming the Ferghana Valley into a dynamic economic hub. With a collaborative approach from governments, businesses, and international partners, the region may overcome current challenges and thrive in the global economy.

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Google Pledges Stronger Action Against Fake Online Reviews in the UK

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Google has committed to stronger measures to combat fake online reviews in the UK, following an investigation by the Competition and Markets Authority (CMA). The tech giant has promised to clamp down on misleading review practices and impose penalties on businesses and individuals found boosting their ratings fraudulently.

This move comes after the CMA warned that deceptive reviews could influence up to £23 billion of consumer spending annually, undermining trust in online platforms. Under the agreement, Google will take more proactive steps to identify and remove fraudulent content and issue warning labels on the profiles of businesses engaging in dishonest practices.

Sarah Cardell, chief executive of the CMA, welcomed Google’s pledge, highlighting the impact of fake reviews on consumer confidence. “Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage,” she said. “The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices.”

Cardell emphasized that this was a matter of fairness for both consumers and businesses. She also urged other platforms to examine their processes in light of the CMA’s new powers, which, starting in April, will allow it to independently determine if consumer law has been violated, with the potential for fines of up to 10 percent of global turnover for non-compliance.

As part of the agreement, Google has committed to reporting back to the CMA for the next three years to ensure the new safeguards are being implemented effectively. The company, which already blocks millions of fake reviews each year, responded by stating: “Our longstanding investments to combat fraudulent content help us block millions of fake reviews yearly – often before they ever get published.”

The CMA’s investigation into Google and Amazon began in 2021, with concerns that both companies were not doing enough to prevent the spread of fraudulent reviews. While the investigation into Google has now been resolved with this agreement, the inquiry into Amazon continues.

In recent months, the CMA has intensified its scrutiny of major tech companies, including launching separate investigations into Google’s search and advertising practices, as well as the operating systems of both Apple and Google. The CMA’s new interim chair, Doug Gurr, a former Amazon executive, recently prompted business minister Justin Madders to deny claims that the government is overly influenced by Big Tech.

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