Home TOP NEWS No ‘non-dom’ tax status if Labour comes to power

No ‘non-dom’ tax status if Labour comes to power

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Ed Miliband on campaign trail.
Ed Miliband on campaign trail.
Ed Miliband on campaign trail.

A Labour government would abolish the non-domicile rule that allows some wealthy UK residents to limit the tax paid on earnings outside the country.

Ed Miliband will say non-dom status is a symbol of tax avoidance and “makes Britain an offshore tax haven” reoprts BBC.

Labour says it is “uncertain” how much money the move would raise, which would affect an estimated 115,000 people.

The Conservatives said the policy was confused and they had raised more money from non-doms than other governments.

Non-doms are defined as British residents  who pay tax on their UK earnings but whose permanent home is deemed to be outside the UK and therefore do not have to pay UK tax on foreign income as long as they do not transfer it to the UK – or they pay a charge of at least £30,000 instead of a full assessment.

Famous examples include Chelsea owner Roman Abramovich, while former Conservative deputy chairman Lord Ashcroft gave up the status in 2010 to keep his place in the House of Lords after a change of law.

Some Labour supporters including businessman Sir Gulam Noon also had non-dom status in the past.

Whose side are you on? It is one of the most powerful questions in politics and Ed Miliband believes it is the key to seeing him installed in Downing Street.

That’s why Labour is targeting the so-called non-doms today. They’re very rich, often foreign and enjoy a lifestyle that makes them resented by anyone who’s struggled to make ends meet in recent years.

That is, incidentally, the same reason George Osborne targeted them to pay more when he was in opposition and increased the annual tax charge some pay in his last Budget.

Let’s be clear though, these people are not tax dodgers. They pay tax on their UK earnings plus an annual charge of £30,000 or more to have a totally legal tax status that Gordon Brown as well as George Osborne decided to keep as they were advised they risked losing more in tax by scrapping it than keeping it.

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