Telling the truth about SME life today

Treasury planning fresh non-dom tax

The new tax on non-doms would replace the current flat-rate charge, which has so far failed to raise significant revenue for the Treasury coffers.

According to a report in the Sunday Times, George Osborne is considering a new flat-rate levy on non-doms, which could be revealed in next month’s Budget.

The current non-dom tax, introduced by Gordon Brown in 2007, hasn’t raised as much cash as was hoped. Gordon Brown introduced a £30,000 levy on those who have lived in the UK for at least seven years, but the tax has raised just £162m so far.

Speaking to the Sunday Times, Liberal Democrat Treasury spokesman Lord Oakeshott says: “Non-dom status is the biggest tax loophole in Britain. The £30,000 non-dom poll tax is a joke – it’s only the tip they give the waitress after drinks in the directors’ box at Chelsea or Manchester United.

“We must redouble our efforts to makenon-doms pay their fair share. We must squeeze the rich, not the middle, to pay for a tax cut for the low paid.”

The new tax wouldn’t come as a massive surprise after the Treasury unveiled a series of proposals to stop tax dodgers last week. But Osbourne must be careful that his plans for a more stringent levy don’t scare non-doms away, either.

The original non-dom tax is thought to have led to 16,000 non-doms leaving the country, according to the Sunday Times piece. Treasury documents suggest four out of five non-doms leave within seven years in order to avoid the levy.

Picture source


Related Stories


If you enjoyed this article,
why not join our newsletter?

We promise only quality content, tailored to suit what our readers like to see!