Squeeze on long-term non-doms could prompt brain drain

  • Comments on Autumn Statement

Roy Maugham, tax partner in our London office, comments:

“These are the latest in a line of initiatives that have hit wealthy international business people living in the UK.”

“The new £90,000 charge for those who have been based here for 17 of the last 20 years is quite punitive.”

“We could see individuals leaving for good who have made a significant contribution to the UK economy over the years, often investing heavily or helping to build British businesses.  That loss would outweigh the benefits of the additional £120 million it is expected to bring in its first year.”

“The proposals to lock non-doms into paying on the remittance basis for a minimum of 3 years could also create problems – it would have a particularly unfortunate impact for those whose overseas income is genuinely volatile, which would not be unusual for an entrepreneur. In some circumstances they could end up paying more in tax than they had in overseas income.”

“The increased annual tax on enveloped dwellings (ATED)  charge on companies for residential properties over £2million will also be a significant factor for many – and let’s not forget, not every non-dom is ultra wealthy.”

“We need to encourage talent to the UK, and successful investors and entrepreneurs with strong links to other countries bring huge benefits to our economy.  If we squeeze too hard we risk driving them away.”