Plans to tighten rules on bringing money back to the UK by non-doms could seriously damage the property industry.
Savills, which says that non-doms account for 70% of homes sold over £4m, has warned the moves could add to existing fears about the prospects for London real estate.
Non-doms will have to pay a £30,000 fee if they are here for more than seven years, under well-publicised changes, but the government is also planning a more wide-ranging attack on the trust set-ups non-doms use to bring capital into the UK, tax institutes have warned.
Nigel Barker, tax partner at Deloitte, told the Financial Times: 'There is a substantial number of that type of investor who is non-domiciled and has been able to make capital gains free of UK tax. At present property can be sheltered from UK tax. That is going to be difficult going forward, using the same structures.'
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