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Quarter of non-doms 'set to quit UK'

12 March 2009
Categories: News , Residence & domicile
KPMG warns of potential £90m loss

Almost a quarter (24%) of non-domiciled taxpayers are considering leaving Britain, according to KPMG, and over 90% believe that the tax changes confirmed in the 2008 Finance Act have damaged the country’s competitiveness.

These figures – results from what KPMG claims is the first quantitative survey of UK tax-resident non-domiciles – run counter to the Government’s view that the country ‘remains an attractive place to work, do business and invest’, said the accountancy giant.

If the UK does indeed lose 24% of its non-domiciled taxpayers, it would also potentially miss out on accessing up to £90 million in net assets, added the company.

In response to the new findings, KPMG suggested changes to five areas of legislation to simplify tax rules concerning the non-domiciled:

  1. The meaning of ‘relevant person’.
  2. The £30,000 remittance basis charge and nominated income rules.
  3. The rules for mixed fund bank accounts.
  4. The start date: should apply only for income and gains received from 6 April 2008.
  5. The service exemption for UK advisers: broaden to increase UK’s competitiveness.

‘We knew that the non-doms were unhappy about the tax changes, but we had not appreciated the extent to which they seem to be prepared to vote with their feet,’ said Carolyn Steppler of KPMG’s private client advisory team.

She continued: ‘The economic climate has changed dramatically since the changes to non-dom taxation were first unveiled in the 2007 Pre-Budget Report.

‘The UK and other governments are now introducing fiscal measures to stimulate the economy and to encourage investment, but the tax changes for non-doms are perceived as having the opposite effect.

‘Our concern is that many non-doms may find that the UK no longer offers the opportunities it once did.’

Categories: News , Residence & domicile
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