The FT has reported that:
Britain is once again eligible to market itself as a tax haven following recent concessions to “non-dom” residents, according to a firm of advisers.
Grant Thornton’s stance reflects a renewed determination to restore the UK’s image as an attractive place for foreigners to settle, amid fears that its appeal has been permanently [...]
The FT has done itself little credit over the last few weeks with a mass of letters and commentary supporting the tiny non-domiciled elite who live in this country. A great many people have commented to me at how sickening they have found this.
But it did not please the non-doms despite this. On Wednesday they [...]
The Budget contains revisions to the rules for employment related securities relating to people who are resident but not ordinarily resident in the UK. These rules get so close to making the private equity carry chargeable to income tax for some non-domiciled people.
But then you have to remember that the BVCA rules deem the carried [...]
The Budget notes say (page 246) that:
Transfer of Assets Abroad
27. Anti-avoidance legislation designed to prevent individuals from avoiding
income tax by transferring assets abroad will be amended to ensure these
anti-avoidance provisions apply to non domiciled individuals. The
remittance basis will apply to remittance basis users.
This is a massive change. It effectively says that once a non-domiciled person [...]
The Budget changes the test for resident days in the UK (page 239)
You now have to be in the country at midnight. This overcomes a problem with the rules announced in the Prejudged Report which could double count days.
If by chance transit requires a person to be in the UK at midnight this is ignored.
I [...]
There are four changes on domicile:
1) The limit on earnings to be ignored is now £2,000 rather than £1,000
2) Income from offshore trusts will only be taxed when remitted to the UK even if the assets are in the UK
3) Children are exempted (amazing, rich kids are the real winners in this budget)
4) There will [...]
What budget?
After 30 minutes I’ve found nothing to comment upon bar:
1) Domicile rule changes are confirmed as published,a nd will not change again in the parliament and the next.
2) It’s impossible to interpret what Darling means with regard SMEs.
3) The growth in public spending will slow from 2011.
That’s it.
Brendan Barber has a good article on the Guardian web site. As he says:
This week’s budget will show whether ministers grasp a distinct change in the nation’s mood. For the last decade or so there has been little or no discussion of tax. It’s mainly caused difficulties for the Conservatives as their realists try to [...]
Martin Wolf is one of the best respected economic commentators in the world. His column in the FT this morning is a classic. He argues that:
Am I the only person to be surprised not by the complaints [by the non-domiciled], which are predictable, but by their lack of ambition?
And he goes on, by arguing in [...]
The British Bankers Association have, according to the FT said that:
The financial services industry could suffer “irrecoverable collateral damage”, unless the government defers and reconsiders its tax changes for foreign residents
I find this astonishing. Do they really think anyone is stupid enough to believe this?
As I noted yesterday, maybe 1,000 people will leave the UK [...]
