The CBI has warned the Treasury that plans to penalise non-doms with a £30,000 tax hit are rushed, confused and should be rethought.
The tax changes send out a message that the UK no longer wanted to be attractive to foreign talent, it said, and will hit the fast-growing financial services industry hardest.
CBI Director General Richard Lambert said: ‘Non-doms have been an important part of the UK’s economic success and prosperity for many years, and successive administrations have provided a warm welcome. Partly as a result of their presence, London is the world’s leading financial and business centre.’
Research by the CBI in to the Treasury’s figures has thrown up serious questions about its ability to raise the revenue, it has claimed. And subsequent attempts to deal with the concerns have ‘contributed to the impression of policy-making on the hoof.’
It suggested a 12-month delay would buy time for the Treasury to consult properly ‘and iron out the confusion and inconsistencies whilst delivering breathing space to non-doms to plan their affairs properly.’
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