THE TREASURY has revised down its estimates for the numbers of non-domiciled individuals (non-doms) paying the remittance charge by 3,300.
Exchequer secretary to the Treasury David Gauke originally told Parliament that a total of 9,600 non-doms would pay an annual remittance charge in 2012-13, which allows them to pay tax only on money remitted to the UK and not on total worldwide income.
This was an increase on the 7,400 non-doms expected to pay the charge in 2011-12, despite chancellor George Osborne announcing an increase in the charge for non-doms who had been resident in the UK for 12 or more of the previous 14 years from £30,000 to £50,000.
However, following an investigation by Accountancy Age, Gauke yesterday told Parliament that the figures for 2012-13 were 6,300 in total, with 2,600 people paying the £30,000 and 3,700 paying the increased £50,000 charge.
Gauke told Parliament that the government has no estimates for the change in the number of non-resident taxpayers between 2009 and 2010 and that information relating to 2010-11 was not yet available.
Mike Warburton, tax director at Grant Thornton, said: “I could not understand where the 9,600 number came from. The original estimate by the last government was 4,000. The actual number in the first year was 5,400, so they weren’t far out.
“I can understand that this number is rising with the continuing influx of wealthy people to the UK. We know that most properties over £10m in London are sold to overseas buyers, increasingly the Chinese. On that basis 6,300 is reasonable, even with the extra cost: 9,600 was not.”
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