Concession on non-dom tax levy calms anger

The Treasury has relaxed its approach to offshore trusts and the introduction of double taxation relief which means non-doms will now not be taxed twice on the same income and capital gains.

Non-doms will however have to pay £30,000 a year to retain their status after seven years in the UK. Alternatively they can choose to be taxed in the same way as UK-domiciled taxpayers.

Some experts believe the concessions will reduce the revenue to the Treasury by as much as £100m, although it still stands to raise £700 a year as a result of the new packages of measures.

Darling said: “We welcome the contribution made by people born outside the UK who choose to come and work here. They are an important and central contributor to our economy’s growth and prosperity. They pay taxes on their earnings here and also pay tax on money they bring into the country from abroad.

“But for those non-domiciled individuals or families who have chosen to make Britain their home, I believe that it is right and fair that they should, after 7 years, pay a reasonable charge to maintain the right to be taxed differently from other UK residents.”

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