John Whiting, Chairman of the CIOT’s Management of Taxes Committee, says:

“One can understand the driving force at work here but there is also an important matter of tax principle. A taxpayer will, under the proposed non-domiciled rules, be given an option over two bases of taxation. Yet someone choosing one route is, seemingly, to be handed an extra penalty. It does seem a bad precedent if making what might be regarded as the wrong tax choice attracts adverse treatment in another area.”

This is an odd choice of words – by electing for the remittance basis it is likely that the tax bill will be reduced so this could hardly be an extra penalty!

It should be noted that this bill, like most Private Members’ Bills is unlikely to become law