Chancellor’s Tory tax attack ‘a guess’

Chancellor Alistair Darling faces a humiliating climbdown after it was
revealed figures he used to attack Tory proposals on non-domiciles should be
treated with ‘a great deal of caution’.

In a letter to the Shadow Chancellor, George Osborne, the permanent secretary
to the Treasury, Nicholas Macpherson, acknowledged that ‘there is no complete
data set for the unremitted foreign income of non-domiciles’, reports the

The row erupted after Darling this week dismissed Osborne’s costing of a
£25,000 non-dom tax proposal, saying: ‘The Treasury’s initial estimate, on best
information available, is that just 15,000 current non-domicile residents have
foreign income in excess of £62,000.’

But the Treasury document that set out the costings said: ‘All figures are
best estimates but need to be treated with a great deal of caution due to the
lack of available data or evidence.’

The Tories plan to use the tax to pay for an increase in the inheritance tax
threshold to £1m.

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