PBR in depth: Non-domicile move may hurt tax take
The chancellor's review of the tax regime for foreigners living in the UK may harm the UK economy, the Society of Trust and Estate Practitioners has warned.
The review of non-domicile tax status – the tax system which means foreignersresident in the UK, but with overseas connections, are taxed on UK-based income and gains – was flagged in last year’s Budget and revisited in today’s pre-Budget statement.
But John Riches, chair of the society’s UK technical committee, said today that it could provide a tax boost to other EU countries at the UK’s expense.
‘No one can guarantee that wealthy individuals will leave the UK if the rules are altered radically, but we do know that globalisation has made it easier to move money and labour across national boundaries and that our EU competitors, like Belgium and Italy, have similar schemes specifically aimed at attracting the wealthy,’ he said.