TaxPersonal TaxTreasury adviser slams non-dom levy

Treasury adviser slams non-dom levy

Fears rise that new tax will drive high earners out of London

A leading Treasury adviser has warned the Government’s ‘ill-conceived’ plans
for a crackdown on non-domiciled UK taxpayers are likely to damage London’s
standing as the world’s leading global financial centre.

Bob Wigley, chairman of Merrill Lynch Europe, Middle East and Africa, added
his voice to rising criticism of the proposal, which would levy an annual
£30,000 on taxpayers who want to avoid UK tax on foreign income which is kept
outside Britain – and cut their use of offshore vehicles for avoiding tax.

UK-domiciled Wigley, who is a member of Chancellor Alistair Darling’s group
of ‘wise men’ who advise on keeping London competitive, told
the
Sunday Times
: ‘This proposal was ill-conceived from the start. While it
clearly has some political attraction, the economic case is flawed.’

‘These measures were partly aimed at the non-domiciled billionaires. They
could, if not withdrawn or substantially amended, drive offshore young upcoming
talent that currently chooses to live in London, so making London the leading
global financial centre.’

He added: ‘When you consider that most of those who could be driven away
probably don’t use the state education or health systems but spend a lot of
their above-average incomes here, so contributing disproportionately to Vat
receipts, these are exactly the good-value taxpayers London should want to
retain.’

According to Treasury calculations, the planned tax will raise £800m in
2009-10 and £500m in 2010-11.

Further Reading:

Read
the Sunday Times story

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter