Budget 2011: Non-doms to face £50k flat rate tax
Source: Michael Walter/Troika
Non-domiciled individuals will face a £50k flat rate tax once they have been in the UK for 12 years.
Delivering the Budget today, George Osborne (pictured) said the measure will raise £200m in the coming years.
He added the charge will not be levied on those remitting money to the UK for the purposes of investing in British business.
He also said a statutory residence test will be introduced.
In April 2008, Labour introduced a £30,000 a year flat rate on overseas earnings which applied to those non-doms who have lived in the UK for seven years or more. The choice was pay the flat rate or sign up to British tax system. Darling had tried to introduce disclosure measures for offshore assets but was forced to abandon the plans.
Under the new rules non-doms who have been living in the UK for more than seven years but less than 12 years will remain subject to the £30,000 charge.