An estimated 3,000 of the UK’s wealthiest residents are set to leave the country as a result of the clampdown on their beneficial tax regime, the Treasury has said.
Foreign citizens or ‘non-doms’ based in the UK are exempt from tax on their offshore income, but will face an annual charge of £30,000 after residing in Britain for seven years.
An existing loophole, which also exempts them from capital gains tax, is also set to be soon closed by the Treasury, a report has said.
The plan, which comes into effect next April, has been criticised for damaging London’s reputation as financial centre since it may effectively drive away the wealthiest citizens.
Further reading:
PwC warns: act now on non-dom tax rules
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