'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.