The Government has ignored the potential cost to the UK economy of introducing its proposed £30,000 annual levy for UK-resident non-domiciles, according to business and financial advice firm Grant Thornton.
The levy, which will apply to anyone who wants to continue to be taxed on the remittance basis for their foreign-sourced income and gains, and who has been resident but not domiciled in the UK for seven years, comes into force on 6 April 2008. About 20,000 people are estimated to be affected, and the Government has said as many as 3,000 may leave the UK as a result. With non-doms contributing £12bn a year to the UK economy, and £4bn in tax revenues, a reduction of 15% in non-dom numbers could have a significant impact. The tax take from the levy could fall from a projected £350m in 2009/10 ...
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