Taxman still wrangling over non-dom charge
HMRC has failed to resolve the dispute with the US over its tax crackdown on non-doms
HM Revenue
& Customs (HMRC)’s dispute with the US over the affect on American
expats from chancellor Alistair Darling’s tax crackdown on non-domiciled
foreigners is unlikely to be resolved before the Budget next week, according to
government insiders.
US investment banks and multinationals are increasingly alarmed at the
continued uncertainty over the impact of the new rules on thousands of Americans
in the UK, the Financial Times reports.
The dispute stems from the possibility that US non-doms will be unable to
offset the £30,000 annual levy on wealthy foreigners, who have been in the UK
for seven years or more, against their US tax bills.
Senior Treasury officials have travelled to Washington as part of a drive by
the government to resolve the issue. HMRC’s ‘clarification’ on the non-doms
changes last month said the UK would ‘continue to discuss with the US
authorities how the £30,000 charge can become creditable against US tax’.
Further reading:
CIoT urges one year delay of non-dom laws
CBI hits out at ‘rushed’ non-dom plans
Read
story in the Financial Times