Darling signals rethink on non-dom tax
The chancellor appears willing to bow to pressure to rethink his non-dom taxation plans
Chancellor Alistair Darling appeared last night to be bowing to the growing
pressure to rethink plans to increase taxation on non-domiciled foreigners
living in Britain.
The
Treasury is said to be looking at possible concessions in the wake of a wave
of protests over the tax crackdown, raising concerns about a possible exodus of
wealth-creating foreigners from the City, The Times reports.
Officials were reportedly examining the detail of the proposals and could be
considering provisions which would assure non-doms the Treasury’s aim were not
to pry into their world-wide tax affairs, but only to tax the earnings they
bring to Britain.
The rethink comes as business leaders renewed attacks on Mr Darling’s planned
crackdown on non-doms. ‘Many of our clients have already started to put in place
how they will leave the UK,’ Chris Sanger, an
Ernst
& Young partner and Institute of Chartered Accountants deputy chairman
of the tax faculty, said. ‘There is very little time left for the Treasury to
come out and signal a delay.’
Further reading:
Cameron under non dom pressure
Non-dom changes will cost UK £2bn