All posts tagged: NonDom

Billionaire non-dom quit UK on day Hunt scrapped tax breaks, says adviser | The super-rich

Billionaire non-dom quit UK on day Hunt scrapped tax breaks, says adviser | The super-rich

Published by skeptic

A London-based billionaire non-dom left the UK for good on the day that the chancellor, Jeremy Hunt, announced the scrapping of the 225-year-old tax scheme in the spring budget, his tax adviser has revealed. “We did have one billionaire client who literally on the day of the budget, 6 March, got on his private jet with his wife, with his children, with the private tutor, and flew to one of his other 17 houses in the world – and said ‘I’m not coming back’,” said John Barnett, a partner at the law firm Burges Salmon, which specialises in advising the super-rich on how to legally reduce their tax bills. Barnett and other tax advisers to the very wealthy, say dozens of their non-domicile clients have already left the country to avoid being subjected to UK taxes on their overseas income, after Hunt announced the abolition of the regime from April 2025. They expect hundreds more to leave for other countries such as Italy, Spain, France and Malta that have special tax incentives designed to attract …

Tory plans to abolish non-dom status riddled with loopholes, Labour says | Tax and spending

Tory plans to abolish non-dom status riddled with loopholes, Labour says | Tax and spending

Published by skeptic

Conservative plans to abolish non-dom status are riddled with loopholes worth hundreds of millions of pounds for the wealthiest people in the country, Labour has claimed. Analysis by the party found that the policy, announced by Jeremy Hunt in this month’s budget, could theoretically see Rishi Sunak’s family benefit from tax savings of nearly £250m. The findings will renew focus both on Sunak’s own wealth – his most recent tax return showed a personal income of £2.2m – and the non-dom status of his wife, Akshata Murty, who owns a £690m stake in Infosys, the IT multinational founded by her father. In 2022, it emerged that Murty claimed non-domiciled tax status, which allows people to avoid paying UK tax on overseas earnings and had potentially saved her up to £20m. Murty subsequently declared that she would pay UK tax on overseas income, but did not give up her non-dom status. Downing Street and the Treasury had previously condemned Labour’s plan to abolish non-dom status to help fund the NHS as harmful to the UK’s attractiveness …

Treasury disbanded non-dom tax policy unit weeks before budget, sources say | Economic policy

Treasury disbanded non-dom tax policy unit weeks before budget, sources say | Economic policy

Published by skeptic

The Treasury disbanded a unit tasked with offshore and non-dom tax policy weeks before announcing significant changes in the budget to the way foreign residents are taxed, sources have said. The unit, which comprised technical experts on offshore tax issues, included specialists on non-dom policy. These officials would, according. to the sources, have been expected to help manage the implementation of a replacement for non-dom status as outlined by the chancellor this week. It is understood officials fear the Treasury is ill-prepared for an onslaught of lobbying from the wealth advisory industry, which is already seeking to overturn or shift the abolition of the tax break. One City law firm that specialises in advising clients with complex offshore tax affairs, told staff they expected a rush to “safeguard” benefits of the status – such as creating offshore trusts while claiming the status in order to avoid UK inheritance tax – before changes are put in place, according to an internal memo. A second law firm told staff advising on offshore matters not to book leave …

Budget 2024: Chancellor abolishes ‘non-dom’ tax breaks – and confirms national insurance will be cut by 2p | Politics News

Budget 2024: Chancellor abolishes ‘non-dom’ tax breaks – and confirms national insurance will be cut by 2p | Politics News

Published by skeptic

The chancellor has said that the current tax system for non-doms will be abolished – and confirmed a 2p cut to national insurance. In the budget, Jeremy Hunt said “permanent cuts in taxation” were possible because of the progress made in bringing down inflation – with forecasts suggesting it will fall to the target level of 2% within months. Scrapping the “non-doms” regime, which allowed certain wealthy individuals to avoid paying tax on their foreign income, is expected to raise £2.7bn a year. Budget live: No rabbit out of the hat on income tax from chancellor Mr Hunt spoke about cutting taxes to increase growth, and the official Office for Budget Responsibility (OBR) forecast predicted that living standards will grow faster than expected. But real disposable household disposable income is not expected to recover to pre-pandemic levels until the 2025-26 period, after the next election. And the tax burden is also set to continue to rise – albeit at a slightly reduced level when compared to last autumn’s forecast. In terms of spending, Mr Hunt …

Abolishing non-dom tax status would be humiliation for Tories, says Phillipson | Budget 2024 (spring)

Abolishing non-dom tax status would be humiliation for Tories, says Phillipson | Budget 2024 (spring)

Published by skeptic

It would be an “abject humiliation” for the Tories if they implemented Labour’s policy of abolishing non-dom status, the shadow cabinet minister Bridget Phillipson has said. The abolition of the status, which gives generous tax breaks to some of the UK’s richest residents, has long been one of Labour’s headline policies, but the chancellor, Jeremy Hunt, is understood to be considering announcing a similar move in this week’s budget. During an interview on Sky News’s Sunday Morning With Trevor Phillips, Phillipson said: “If they were to do that [abolish non-dom status] it would be an abject humiliation, because Conservative cabinet ministers have spent years rubbishing this idea. “If they were to do it it would just demonstrate that it is Labour who are leading the charge when it comes to the battle of ideas in this country.” Non-dom status allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax on their overseas income or capital gains. Rishi Sunak’s wife, Akshata Murty, has previously enjoyed non-domiciled status. Bridget …

The Tories Are Thinking Of Scrapping ‘Non-Dom’ Status. Here Are All The Times They Said That Was A Bad Idea

The Tories Are Thinking Of Scrapping ‘Non-Dom’ Status. Here Are All The Times They Said That Was A Bad Idea

Published by skeptic

Jeremy Hunt is apparently considering scrapping the tax rules which allow wealthy foreigners living in the UK but who are officially “domiciled” in their own countries to cut their tax bills. The so-called “non-dom” status means that they do not pay UK tax on money they earn abroad, potentially saving them millions of pounds in tax. The Chancellor could end the scheme – which is estimated to cost the Treasury around £3.2 billion a year – in next week’s Budget as he tries to find enough cash to pay for pre-election tax cuts. The move would be politically explosive because Labour has already said it would end non-dom tax status if it forms the next government. Shadow chancellor Rachel Reeves has said Labour would spend the money raised on, among other things, improving the NHS. But it would also open the Tories up to accusation of hypocrisy given how critical senior party figures – not least Jeremy Hunt himself – have previously been of the policy. In November 2022, shortly after be became Chancellor, he …