Kent Castle Owner Considers Independence After Non-Dom Tax Abolition

The proprietor of a Kent castle has announced her intention to petition the King for her estate’s independence, following the government’s decision to abolish non-dom tax status. Ann Kaplan Mulholland stated that the elimination of this tax regime rendered her continued presence in the UK “not viable.” Ms. Mulholland, who owns Lympne Castle, situated near Hythe, remarked: “We could have our own kingdom, we could separate from the rest of the UK, and all of those affected by this tax change could come to live in Lympne.” A spokesperson for HM Treasury indicated that the replacement of the non-dom tax regime would rectify “unfairness” within the tax system. The term “non-dom” refers to a UK resident whose permanent domicile for tax purposes is located outside the UK, meaning they are liable for UK tax solely on income generated within the UK. This arrangement has historically offered affluent individuals a means to achieve substantial and lawful tax savings by designating a country with a lower tax burden as their domicile. Chancellor Rachel Reeves confirmed during her October budget announcement that the non-dom tax regime is slated for abolition effective April 2025. Ms. Mulholland, whose castle provides employment for 50 individuals, stated to BBC Radio Kent: “I’ve invested £25m into regenerating Lympne Castle, the staff we hire pay tax, and we pay tax on our business here. Why should we be expected to pay more on what we earn abroad?” She expressed that these modifications made her feel “unwelcome” in the UK, acknowledging the public expectation for wealthier individuals to contribute more, but asserting that such changes would deter investments similar to hers in Lympne. She further commented: “Locals know what we’ve created here, it’s special. And it would be sad to lose any of it because I’m unable to stay here and call this beautiful place my home.” An HM Treasury spokesperson declined to comment on specific taxpayers, but added: “Replacing the outdated non-dom tax regime with a new internationally competitive residence-based regime will address unfairness in our tax system, attract the best talent and investment to the UK, and ensure everyone who is a long-term resident in the UK pays their taxes here.”