Non-doms pay foreign tax on their foreign income and UK taxes on their UK income. If they decided to leave the UK, the tax revenue the government receives would be lower, therefore the policy overall will end up costing us more and there’s no practical benefit.
I’ve got no time and sympathy for non-doms, but the policy won’t achieve anything.
If they are currently claiming non-dom status then they don’t pay tax on UK income, that’s the point. They have interests in the UK but because they technically don’t live here they don’t pay anything.
What is being proposed is to move it over to the system you have just described.
I have a cousin who is non-dom except he doesn’t have any UK interests so there’s no missing tax in his case but it does mean they actually understand how the law works because I was interested and asked him when all this started. In his case this won’t make any difference because he doesn’t have any earnings in the UK.
The company he works for is American and is operating in Western Africa.
Non-doms pay foreign tax on their foreign income and UK taxes on their UK income. If they decided to leave the UK, the tax revenue the government receives would be lower, therefore the policy overall will end up costing us more and there’s no practical benefit.
I’ve got no time and sympathy for non-doms, but the policy won’t achieve anything.
No that’s incorrect.
If they are currently claiming non-dom status then they don’t pay tax on UK income, that’s the point. They have interests in the UK but because they technically don’t live here they don’t pay anything.
What is being proposed is to move it over to the system you have just described.
I have a cousin who is non-dom except he doesn’t have any UK interests so there’s no missing tax in his case but it does mean they actually understand how the law works because I was interested and asked him when all this started. In his case this won’t make any difference because he doesn’t have any earnings in the UK.
The company he works for is American and is operating in Western Africa.
No, they literally do pay UK taxes on their UK income. It would be illegal not to.
The proposed change means that they would have to pay UK taxes on their foreign income as well as paying the foreign taxes.