The £30,000 Annual Charge The pre budget report announced that the £30,000 annual charge will apply to those resident in the UK for more than seven years.
It was later announced that taxpayers using the remittance basis will now not be required to make any additional disclosures about their income and gains arising abroad.
Effect on Foreign and UK Investments Following the introduction of this tax charge, the UK non domicile will now be hesitant to invest abroad as it would no longer be advantageous from a tax point of view when assessing such investments.
Such individuals may now look to keep their funds in the UK and could contribute to the revival of the UK property market, where the tax treatment would be on a level playing field between UK and worldwide investments.
Non Domiciles and Businesses Exiting the UK There is much talk about non domiciles and foreign business exiting the UK after the introduction of these non domicile reforms.
London became a refuge for the super rich with approximately 115,000 people having non-dom status.
The majority of these people came from the US, Germany, Switzerland and France.
By such individuals leaving the UK they may well qualify as non UK residents and therefore be relieved from further taxes such as capital gains tax if they remain non-resident for five or more years, as well tax on higher rate dividend if they remain outside UK for one full tax year.
This was clearly not a well thought of reform and we will see the repercussions of these changes many years in to the future.
The effect of such tax introductions will certainly not help the already very fragile and volatile UK economy that currently needs all the help it can get rather than such ill thought off tax raising strategies.
It was later announced that taxpayers using the remittance basis will now not be required to make any additional disclosures about their income and gains arising abroad.
Effect on Foreign and UK Investments Following the introduction of this tax charge, the UK non domicile will now be hesitant to invest abroad as it would no longer be advantageous from a tax point of view when assessing such investments.
Such individuals may now look to keep their funds in the UK and could contribute to the revival of the UK property market, where the tax treatment would be on a level playing field between UK and worldwide investments.
Non Domiciles and Businesses Exiting the UK There is much talk about non domiciles and foreign business exiting the UK after the introduction of these non domicile reforms.
London became a refuge for the super rich with approximately 115,000 people having non-dom status.
The majority of these people came from the US, Germany, Switzerland and France.
By such individuals leaving the UK they may well qualify as non UK residents and therefore be relieved from further taxes such as capital gains tax if they remain non-resident for five or more years, as well tax on higher rate dividend if they remain outside UK for one full tax year.
This was clearly not a well thought of reform and we will see the repercussions of these changes many years in to the future.
The effect of such tax introductions will certainly not help the already very fragile and volatile UK economy that currently needs all the help it can get rather than such ill thought off tax raising strategies.
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