Darling: ‘no knee-jerk tax crackdown’

New chancellor Alistair Darling is to defy left-wing critics of government
tax policy, implying that he intended no crackdown on private equity nor the
non-domicile system that allows wealthy foreign billionaires to live in the UK
and avoid huge amounts of tax.

Referring to the private equity row in an
with the Financial Times
, Darling said: ‘I think we should be very, very
wary indeed of a knee-jerk reaction or a reaction to a day’s headlines into
making a tax change that could result in unintended consequences and undesirable

‘I am reminded of Sarbanes-Oxley in the US… and they’re now looking at how
they can get out of it. There is no doubt it has damaged the US market. When, or
if, we make any changes they must be made at the proper time, in the context of
the Budget or the pre-Budget report and in the context of making tax reform
that is beneficial to the country.’

Darling said he would be ‘vigilant’ on ‘abuses’ but said of the non-domicile
rule: ‘I am very aware… that there are a number of people who are doing business
here, and are contributing to business here, and could go somewhere else.’

Further reading:

the FT story

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