We’ve switched our classes to live online. For more Covid-19 updates, click here

£6.6bn added to UK coffers by non-doms in 12 months

£6.6bn added to UK coffers by non-doms in 12 months

Although the issue of tax evasion by non-domiciled persons was a feature of the last election in the UK, the amount of tax revenue collected from them actually rose by 7%, according to city-based law firm Pinsent Masons.

In the firm's report, 2013/14 saw non-doms contribute £6.6bn in tax, an increase from £6.18bn on the previous year.

Tax rules

UK residents have 'Non-domiciled' status if they can prove that their permanent home is outside the UK. This means they then have to pay tax on their income earned in the UK, but don't have to on foreign income as long as it is not transferred into the country.

Non-doms can also choose to pay a charge of at least £30,000 instead and avoid a full assessment.

Numbers

Pinsent Masons' report revealed that the total number of people claiming non-dom status had increased to 114,300 in 2013/14, up from 110,700 in 2012/13.

HM Revenue & Customs rules will soon be changing, with non-coms effectively disappearing after April 2017.

Under the new rules, those who have resided for more than 15 of the past 20 years in the UK will then be treated as domiciled in the UK. This means they will be taxed on their entire worldwide income and other financial gains.

Better deals

Head of tax investigations at Pinsent Masons Fiona Fernie expressed concern that the new rules might cause some high wealth individuals to leave the UK.

"Changes announced in the Budget have led many non-doms to reassess their position – a large proportion are internationally mobile and will hesitate to relocate if a better deal can be found elsewhere," she said.


Other News

What can business leaders learn from the COVID-19 pandemic?

The global pandemic has highlighted many heart-warming and positive stories of grit, resilience, kindness and collaboration from across the planet.…

How is COVID-19 reshaping global business education?

In just a few months, COVID-19 has changed a number of sectors including tourism, healthcare and education. Each sector is…

5 common challenges in company budgeting and budget control

All businesses benefit from having a structured approach to expenditure and resource allocation for meeting the company expenses. Proper cost…

Back to top