Non-dom remittance proposals may cause exodus
Proposed changes to the tax treatment of non-domiciles could harm the UK's attractiveness to foreign investors, advisers warn
GOVERNMENT PROPOSALS to make remittance elections apply for as long as three years, rather than the current one, could adversely affect the UK’s attractiveness to non-domiciles, advisers warn.
A consultation on the plans, including a new band for people who have been resident for 17 of the last 20 years, is now underway.
A remittance includes income realised abroad and brought into the UK, while it can also come in the form of assets.
There are further proposals to introduce a substantial increase to the charge for people who have been UK-resident for 12 out of the last 14 years from £50,000 to £60,000.
Kingston Smith tax partner Tim Stovold said it would be “sad” to see the non-domicile regime disappear as it has been “part of the story of making London the diverse city it is today”.
“With everyone from Greek ship owners to individuals owning luxury department stores and football clubs choosing to make London their home,” he said.
“In April 2012, the change to the non-dom rules was a welcome one which allowed these wealthy individuals to bring as much money back to the UK as they wanted without a UK tax charge provided that they invested in UK businesses. The current proposals seem to have reverted back to squeezing as much tax as possible from those who can most afford it. The problem with this approach is that this population is highly mobile and although there may not be a mass exodus, those intending to leave in the future anyway may accelerate that decision and many more will simply not come to the UK in the first place.”
