I overlooked this last week in the FT:
A partial climbdown on the new "non-dom" tax regime concerning advisers was signalled yesterday by the Treasury in a move designed to stop parts of the private banking industry relocating offshore. In an amendment to the finance bill, the Treasury proposed an exemption for fees paid by non-doms on investment management services relating to overseas assets. The changes were welcomed by British Bankers' Association, which had warned the Treasury that UK-based advisers would be at a disadvantage compared with their overseas rivals.
However, KPMG, the professional services firm, warned the concessions "did not go far enough in addressing the impact on UK competitiveness and investment in the UK". It said the Treasury had failed to address the incentive for trusts to invest in non-UK assets and for trustees to seek legal and tax advice outside the UK.
It's time for the UK to send out two very simply message to these people. The first is that we do not want to be a tax haven. The second is that we will not be held to ransom by them. The second is not possible, of course, without the first.
But in the interests of the UK as a whole this is what we have to do. Or financial services will destroy us.
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