The non-dom tax loophole is a tax break that allows a small group of high-income people who live in the UK to avoid paying tax on their overseas income for up to 15 years. Non-doms are individuals who are not domiciled in the UK for tax purposes, meaning they are not considered to be permanent residents of the UK. The non-dom status allows them to be taxed only on their UK source income and gains, and not on their foreign income and gains, as long as they do not remit (use or enjoy in the UK) foreign income and gains to the UK.

The non-dom tax status has been a controversial issue in the UK, with some arguing that it is a tax loophole that allows the super-rich to avoid paying their fair share of taxes. Others argue that the non-dom status is good for the UK economy as it attracts wealthy overseas people to the country, who pay tax on their UK income and spend a lot of money here.

Scrapping the non-dom scheme and taxing this income could raise more than £3.2bn in additional annual tax revenue, according to a report by academic economists. However, the Chancellor of the Exchequer, Jeremy Hunt, has argued that scrapping the tax loophole would "damage the long-term attractiveness of the UK".

In summary, the non-dom tax loophole is a tax break that allows non-doms to avoid paying tax on their foreign income and gains as long as they do not remit them to the UK. The issue is controversial, with some arguing that it is a tax loophole that allows the super-rich to avoid paying their fair share of taxes, while others argue that it is good for the UK economy.