Wealthy foreigners pay no tax on their worldwide income and capital gains if they reside in Britain but claim their domicile is overseas. But paymaster general, Dawn Primarolo, suggested that the laws were viewed as unfair, and that she found them difficult to justify to constituents, according to a report in today’s Financial Times.
‘There seems to be quite a lot of agreement it is not fair…people pay tax…and they want to ensure they are paying a fair amount compared to anybody else,’ she told the paper.
However, most major tax bodies are against changing the laws with both the ACCA and ICAS firmly against any tightening up of legislation. They argue that changes to the system will make the UK far less attractive to wealthy foreigners and investors.
Chas Roy-Chowdhury, head of tax at ACCA, said not enough research has been put in to the situation. ‘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,’ he said.
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