Tax ruling forces Al Fayed overseas
An Inland Revenue tax ruling has forced Mohamed Al Fayed, the charismatic Harrods owner who has been seeking British citizenship for over a decade, to pack his bags and relocate to Geneva.
The ruling, which comes into force next month, brings to an end a special agreement that limits his tax on foreign earnings to £240,000 a year.
A statement issued on his behalf claims that the Revenue has singled him out from most non-domiciled taxpayers. ‘The grossly unfair treatment finally convinced me that, for the sake of my family, the time has come to leave,’ reads the statement. ‘My record shows that I have contributed enormously to the economy, business infrastructure and social fabric of this country over many years.’
The Revenue ruling will bring the non-domicile tax argument out in to the open ahead of next week’s Budget speech.