Non-doms face extra £50k tax
Non-domiciled individuals will face a further £50,000 flat-rate tax once they have been in the UK for 12 years.
Chancellor George Osborne announced the new rate in this week’s Budget, saying “we can ask more” of those who have been here longer.
Non-doms who have been living in the UK for more than seven years but less than 12 will remain subject to the £30,000 charge introduced by Labour in 2008.
The charges will not be levied on those remitting money to the UK for the purposes of investing in British business.
The reform is the product of a review of non-dom taxation announced in last year’s emergency Budget in June.
The Government will consult in June before it legislates for the changes in next year’s Finance Bill and the changes are expected to come in from April 2012.
Part of the consultation will include the development of a statutory definition of residence to end confusion over what constitutes non-dom status.
Osborne said he expects the new tax to raise £200m by 2015.