Non Doms - Making the pips squeak?
As the Chancellor’s proposals on taxing the so-called “non doms” (people born overseas or with foreign parentage) become clearer, it is apparent that his £30,000 annual levy is the tip of what could be a very large iceberg.
Media coverage over the past few days has highlighted the very real prospect of many non doms leaving the UK, as the potential impact of some of Mr Darling’s other ideas hit home.
As well as the annual charge, the loss of personal tax allowances and capital gains tax annual exemptions, non doms now face having to pay tax when they sell their homes in the UK. If the proposals become law, tax planning entered into many years ago will effectively become redundant on 6 April 2008, leaving non doms and their advisers with little or no time to try to put matters right.
And it seems a number have decided that, without the fiscal benefits offered until now (and the fear that this may be the first of a number of changes that adversely affect them) there is less reason to remain in the UK.
Many people will think that non doms have had it too good for too long and that these new rules are long overdue. However, if this prompts high earners, and high spenders, to leave the country, it could weaken the pre-eminent position of the City of London and slow this country’s economy. Is the price of fairness too great?
We are speaking with clients we believe may be affected by these new rules. If you think that the Chancellor’s proposals might impact on you, please contact us.
