TaxPersonal Tax‘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.

Related Articles

Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

1m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

8m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

9m Emma Smith, Managing Editor