UK Government plans to levy an annual charge on rich foreigners
March 27, 2008
UK Government plans to levy an annual charge on rich foreigners who have so far avoided paying tax in Britain, but ‘non-domiciled residents are not covered to pay tax on offshore income or capital gains not brought into the country. However, the idea of annual tax does not cut ice with some rich foreigner groups, who in their criticism of the said move, argued it could entice those individual- and the business they conduct- to move elsewhere, which in turn will harm the country’s reputation as a financial power centre.
Even before the levy of $30,000 (proposed annual tax) is imposed) on foreigners not domiciled in Britain, a research by accountants Grant Thorton said an exodus of talent is on the cards, as almost 42% of South Asian higher earners were set to leave Britain. Alistair Darling, the finance Minister, said the measures outlined were backed by the promise that no further changes in this Parliament or next would be made. This, according to the business groups, should help reassure ‘non-domiciles’.
Michael Snyder, the city of the London’s policy head, said, “The chancellor has clearly listened to the city’s overall concerns, but we need to ensure that the detailed rules do not, even inadvertently, do any further damage.” Incidentally, when presenting his first budget, Darling mentioned and praised the contribution made by the people born outside UK working in the UK.
Comments
Got something to say?
