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07 Feb 2011
A flat rate levy on an estimated 120,000 non-domicile individuals is being considered by Chancellor George Osborne.
The Treasury is targeting people who use links abroad to avoid paying taxes.
Further reading
The government hopes this levy will help them avoid tax rises for middle class families. The Telegraph reported.
In 2007, Osborne called for a levy of £25,000 a year on those who live in this country but do not pay full taxes. Former prime minister Gordon Brown introduced his own flat rate levy of £30,000 a year, but this only applied to people who had lived in the UK for seven years or more. But, according to the Treasury, only one out of five non-doms pay the levy as most of them leave the country before the seven year limit is up.
A Treasury spokesman said the potential levy was "pure speculation". But the Telegraph quote the Liberal Democrat Treasury spokesman Lord Oakeshott as saying: "It is decision time in the Budget. We must get on top of the £42bn tax gap Labour left us - non-doms paying their fair share instead of an almost free ride would be a great start."
Prime Minister David Cameron promised over the weekend that there would be no "significant" tax raises.
"It's no good saying we're going to cut the deficit by cutting spending, but then we're going to make things worse again by cutting taxes. I'm afraid it doesn't add up," he said.
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Visitor comments Add your comment
non dom levy
This will definitely stop any overseas workers coming to the UK as they are all most likely to be non UK domiciled individuals. It becomes an expensive cost for both the employer and employee. Companies will definitely move out of the UK as the mobility of key employees is vital for the multinational corporations to function in the UK!!
Posted by: Chris, 08 Feb 2011 | 00:19
Non dom and remittances
I keep reading about non dom who should pay the bill but it is worths telling that any remittances to UK by non dom are taxed without taking into account the losses on shares dealing previous to 2008. Considering that for the last 10 years the stock market didnt make an investor richer it means that non domiciles cannot even think about remitting their whole assets to the UK. This policy applying on years previous to 2008 is the worst issue because paying taxes is fine but you cant afford to pay tax on money whhich disappear during the 2000 internet bubble burst and then the 2008 crisis. Taxing gains only is also very unfair for those who kept their savings because they rely on this money for their retirement compare to others who have been spending a lot while living abroad.
Posted by: Phil F, 09 Feb 2011 | 12:34