Non-doms dissatisfied with changes to tax regime

One in four non-domiciled companies are considering leaving the UK, according to a survey by KPMG.

The survey also shows more than 90% of non-domiciled companies believe recent tax changes - including a £30,000 tax remittance charge, have damaged the UK’s competitiveness.

Carolyn Steppler, associate partner in KPMG’s private client advisory team, said the findings of the survey have supported anecdotal evidence that non-domiciles have been dissatisfied with changes to the tax regime.

'We knew that the non-doms were unhappy about the tax changes but we had not appreciated the extent to which they seem to be prepared to vote with their feet on this issue,' she said.

According to the findings, if just 24% of respondents in the survey sample saying they will quit in the next two years actually leave, the UK could lose out on accessing up to £90m in net assets.

Steppler said economic conditions have exacerbated the affect tax changes have had on no-domiciles.

'Our concern is that many non-doms may find that the UK no longer offers the opportunities it once did. If we want non-doms to come to the UK for employment or business once the economic position improves, the UK needs to be considered an attractive location. This includes an attractive fiscal regime,' she said.

Further Reading:

Multinationals unprepared for non-dom rules

KPMG non-doms survey