Small concessions for non-doms
28 Mar 08
With no U-turn on the controversial tax on non-doms, the effect of the £30,000 tax-avoidance levy on the UK's reputation as a hub for international business is as yet unkown
With no U-turn on the controversial tax on non-domiciled residents, the effect of the £30,000 tax-avoidance levy on the UK’s reputation as a hub for international business is as yet unknown.
The one concession which Chancellor Darling made was to grant non-doms who have been in the UK for only seven years a year’s grace before the annual £30,000 charge applies. Rules will be changed, however, so that any day when a person is in the UK at midnight counts towards UK residence.
The British Bankers' Association had called for a regulatory impact assessment, claiming that the proposals “have had a profoundly negative effect on the UK’s reputation and will affect the attractiveness of the UK and its ability to remain the world’s leading international financial centre”.
Carolyn Steppler, tax director at KPMG, said: “The impact on the attractiveness of the UK as a place to do business remains to be seen. We fear it will not be positive – and the financial gain will be relatively small.”
Rhona Irving, head of tax at PricewaterhouseCoopers Scotland, said: “We are pleased he has amended the proposals to relieve some of the worst effects. These changes, however, will still have an effect on the Scottish economy, particularly the oil industry in Aberdeen.”