US balks at £30,000 non-dom levy offset
Insiders confirm that talks with US over making levy 'creditable' have hit a brick wall
Hopes that US authorities would allow Americans living in the UK to offset
the £30,000 non-dom levy against their tax bill have hit the buffers, with the
Internal Revenue Service refusing to recognise the levy.
According to the Daily Mail, Treasury insiders have conceded that
talks with the IRS have stalled.
If a deal is not reached many of the estimated 10,000 US citizens living in
the UK will have to cough up an extra £30,000 a year as the IRS does not regard
the levy as a tax.
The levy was introduced last year in the pre-Budget report, and will see all
non-dom taxpayers who have been in the UK for more than seven years obliged to
pay £30,000 to keep off-shore income tax free.
Further reading:
City banks hit by non-dom chaos
Treasury adviser slams non-dom levy