PwC warns: act now on non-dom tax rules

The proposed changes in
HM Revenue &
Customs’ consultation document on the tax treatment of residence and
domicile are wider reaching than the much-publicised £30,000 levy, according to
PricewaterhouseCoopers
(PwC).

A newly released PwC report warns the details in a HMRC consultation paper
reveal the proposals significantly tighten the entire non-domicile tax regime,
which is likely to affect most offshore structures and could significantly
increase the amount of UK tax payable.

A higher charge than £30,000 is under consideration for those who have been
UK residents for longer than 10 years, for instance. PwC suggests the
alternative is to not pay the levy but instead pay UK tax on worldwide income
and gains.

PwC urges non-doms to consider their options immediately and reorganise
matters in what appears to be a short ‘window of opportunity’ between now and 5
April. Draft legislation will be published towards the end of 2007 or early 2008
– and it is only then the full impact of the changes will be known.

Further reading:

Property chiefs add to non-dom concerns

Profession divided on non-dom numbers