With the Government reportedly planning to cut back its plan to increase taxes on non-domiciled individuals in the autumn Budget, Pinsent Masons, the multinational law firm, says that the Government must ensure any changes it makes to the non-dom regime do not encourage too many ultra high net worth individuals to leave the UK.
Data from HMRC shows non-doms paid £57.5bn in tax over the past five years – almost double the total amount paid in Inheritance Tax and almost treble the total amount paid in customs duties.
Says Sophie Warren, Senior Tax Manager at Pinsent Masons: “The Government would take a big risk by scrapping the current non-dom tax regime.”
“The current system of taxation of non-doms has already proven to be very successful in generating revenue for HMRC. It has also allowed the UK’s most important industries, like technology and financial services, to attract the very best talent from around the world.”
“Raising taxes on non-doms so sharply could well damage the UK economy, while failing to bring in the tax revenue hoped. That would make a crackdown on non-doms seriously counterproductive.”
* Includes income tax, capital gains tax and national insurance contributions. Source: HMRC
