Government consults on non-doms’ contributions: Tim Stovold comments
In the Autumn Statement the Government announced it would consult on making the claim to pay the remittance basis charge apply for a minimum of three years, so that non-UK domiciled individuals are not easily able to arrange their tax affairs so as to only pay the charge occasionally.
“In the consultation document, HMRC discloses that only 9,000 individuals have paid the remittance basis charge since 2008. This number will decrease further when the annual charges increase from 6 April 2015 to £60,000 and £90,000,” says Tim Stovold, tax partner. “It would be sad to see the non-dom regime disappear as it has been part of the story of making London the diverse City it is today – with everyone from Greek ship owners to individuals owning luxury department stores and football clubs choosing to make London their home. In April 2012, the change to the non-dom rules was a welcome one which allowed these wealthy individuals to bring as much money back to the UK as they wanted without a UK tax charge, provided that they invested in UK businesses. The current proposals seem to have reverted back to squeezing as much tax as possible from those who can most afford it. The problem with this approach is that this population is highly mobile and, although there may not be a mass exodus, those intending to leave in the future anyway may accelerate that decision and many more will simply not come to the UK in the first place.”
The consultation document is available at: https://www.gov.uk/government/consultations/non-uk-domiciled-individuals-consultation-on-a-minimum-claim-period-for-the-remittance-basis-charge/ensuring-a-fair-contribution-from-non-uk-domiciled-individuals-consultation-on-a-minimum-claim-period-for-the-remittance-basis-charge