‘Domicile tax should not change’

'Domicile tax should not change'

Current UK residence and domicile tax rules should remain unchanged, despite a government review into the system, according to ICAS.

The Scottish institute claimed the stability of the UK tax regime and certainty of its impact was important in making the UK economy attractive to foreign investment.

‘The tax rules relating to residence and domicile should be seen to be stable, not subject to arbitrary change, and above all not subject to the risk of any retrospective change,’ said Ian Dewar, convenor of the ICAS tax committee.

Chas Roy-Chowdhury, head of tax at ACCA, agreed saying the Treasury had not carried out sufficient research into the implications of changing the rules. ‘They say it will generate £1.5bn in tax. But what about 20 years down the line? We need to see far more transparency in the debate, rather than the one-sided discussion it currently is.’

A clampdown on residence and domicile tax rules could, observers say, drive foreign investment abroad, resulting in job losses and ultimately lower tax receipts for the Treasury.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource