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Conservatives plotting non-dom clampdown

The Conservatives are evaluating a move to counter a Labour pledge of scrapping non-dom status by ending the ability to inherit the status.

The Times reports that Chancellor George Osborne is considering blocking non-domiciled individuals passing down the ability to avoid paying tax on overseas earnings.

The report comes just a day after Labour announced its own plans to end non-dom status, allowing only those who have been in the UK for “a short period” to pay tax on just UK-based income and gains.

Labour has said it will consult on the exact amount of time the new rules will apply to temporary residents.

A Conservative move to limit the inheritance of non-dom status would come despite a barrage of criticism for the Labour plans, and would mirror a similar pledge from the Liberal Democrats.

Chief secretary to the Treasury Danny Alexander said yesterday the Lib Dems are planning the same reform, as well as increases to current remittance charges.

A Conservative spokesman had not responded to request for comment at the time of publication.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. So having spent all day yesterday trashing Labour’s plans, the Government decides that maybe Non Dom status is a bit of an outdated anachronism after all, so worth a tweak.

    That’s not going to impress their big Non Dom donors who were planning to pass the benefit on to their first born….

  2. Silly idea. It will drive them all away. Yes, consider revising rules etc but stupid to either frighten them or even encourage them to go and live in Jersey, Guernsey, Isle of Man, Monaco or wherever and lose all the benefits first and regret it later isn’t it really…?

    Now if unlocking BVI trust ownership of London property and introducing taxes on things like that was discussed, good idea…. that could be for Money Laundering reasons to enquire, anyway.

  3. Like much in life though, the devil of these things is in the details…

    It seems reasonable to maintain something along the lines we have already (albeit making appropriate adjustments) in order to attract wealthy folk in, but for those who were born and bred here, then it may well make sense to say it can’t be passed on. At some point in the generations clearly it would have to cease. In reality through, would that work – what if said non dom leaves the country for the baby’s birth…..what if they return abroad for education….what if,and the list goes on.

    By all means consider sensibly what might actually be in the country’s best interests, but this continual dreaming up policy on the hoof is crazy.

    Just because it’s popular doesn’t mean it’ll work.

  4. Why not just enforce the 17 years out of 20 years rule that is there at present for IHT purposes.

  5. It becomes plain to see, Cameron and Osborne et el, have set their stall out to win this election, not as you would think, at a cost, but at all costs.

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