David Cameron has stated that he wants to roll out the red carpet for wealthy foreigners.
They spend money here on products and services, additionally some of them also invest in businesses in the UK; all of which is good for the county's finances.
However, the 2008 Budget (pre coalition) introduced the £30,000 non-domicile levy.
The basic premise of this levy is that it enables the non-domiciliary to retain the remittance basis of taxation beyond 5 April 2008 but at a cost. If the remittance basis is not opted for, the non-domiciled individual is taxed on their worldwide income and gains in the same way as a UK domiciled individual.
Pinsent Masons have published the results of an FoI request that shows that the number of UK taxpayers registered with HMRC as non-domiciled (non-doms) has fallen by 2,000 in a year, and that the number of non-doms in the UK has fallen by 17% from 140,000 to 116,000 since the levy was introduced in 2008.
Jason Collins, head of tax at Pinsent Masons, is quoted by Accountancylive:
"The UK’s tax code is seen as becoming increasingly hostile to high net worths.This is not the only area of the government's taxation policy that is "confused" and inconsistent; eg the ever increasing complexity of the tax system is at odds with the government's "promises" to simplify it.
The non-dom levy is part of a series of measures – both implemented and threatened – including the annual property tax and mansion taxes, the 50/45p tax rate and capital gains tax increases, which are driving highly mobile wealthy individuals from the UK.
Non doms are more important to the UK economy now than ever before. They have a choice about where to live. They have huge spending power, invest in businesses and create jobs. They can’t do this if they aren’t here – and there are plenty of other countries competing to welcome them to their shores.
Policy on attracting high net worths to the UK is inconsistent. On the one hand we have entrepreneur visas and investor visas trying to boost the numbers of wealthy migrants, but on the other hand, wealthy migrants are being driven away by the non-dom levy and the constant stream of new measures to tax them more heavily, creating lots of uncertainty."
Tax does have to be taxing.
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