View more on these topics

Fallon says the Tories needto heed non-dom lessons

Treasury select committee deputy chairman and Conservative MP Michael Fallon has hit out at his own Shadow Chancellor’s proposals for non-domiciliaries.

On the ConservativeHome website, Fallon said Shadow Chancellor George Osborne’s plans would be only slightly less catastrophic than Chancellor Alistair Darling’s controversial proposals for non-dom taxation.

Osborne proposes introducing a 25,000 annualflat rate charge on non-domiciled residents,with a guarantee that the Government would not change othernon-dom taxes for at least a Parliament.

He said: “Labour’s proposed tax would be disastrous for the City. It has sent out a clear message that, in seven years time, we simply do not want the non-doms here. But the real lesson of the non-dom row is not for Labour – it is for us.”

An annual levy combined with a guarantee of no intrusion is more attractive than Darling’s proposal, according to Fallon, but he believes that Osborne’s plans fall down because they only give certainty for a single Parliamentary term.

He said: “Non-doms who have chosen to work here are looking for certainty. They now see two policies, eachof which is a proposal. They worry that either party could tweak its policy again. We need to be careful aboutsoft targets, careful about taxing anybody just because we need the money rather than from principle and, above all, very careful not to do anything that might undermine the one bit of our economy that really works.”

In his pre-Budget report last autumn, Darling proposed a 30,000 annual flat rate charge for non-doms who have lived in the UK for more than seven years.

Last week, he retreated on some aspects of the reform, most notably ruling out retrospection on the taxation of offshore trusts and removing the requirement for non-doms to make additional disclosures about their income and gains arising abroad.


Former Bestinvest strategist Cummings sets up new company

Former Bestinvest head of strategy and acquisitions Dominic Cummings is set for a return to the industry with the launch of a new IFA firm called Intethic.The firm received FSA app-roval last Thursday and Cummings hopes to have the business running within the next four to six weeks.Cummings was one ofseveral staff to leave Best-invest […]

Skandia launches web tool to unlock unused Isas

Skandia has launched a new Isa website and tool which it says will help advisers to unlock an estimated £2bn of unused Skandia Isa allowances. The service is offered free to the 10,000 advisers registered on the Skandia Wrap. Skandia says it will help advisers to identify clients with unused allowances and allow advisers to […]

Office of Fair Trading bans Birmingham estate agent

The Office of Fair Trading has made a prohibition order against a Birmingham estate agent banning him from estate agency work. Shazad Jahan, a partner of ‘Saints Estates & Mortgages’ in Kemp Road, Birmingham, has been convicted of offences involving fraud or other dishonesty as referred to in the Estate Agents Act, and therefore considered […]

SG Hambros launches in-house Sipp

SG Hambros Bank is launching an in-house self-invested pension product. It says the main benefits will be allowing clients to invest in a wider range of investments, including private equity funds and strucured products, areas in which it says the bank already has expertise. SG Hambros says the choice of mandates includes a full discretionary […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm