HMRC’s non-domiciled taxpayer statistics, released in August, show non-domiciled taxpayers in the UK contributed a total of £9.3bn in tax receipts, comprising income tax, CGT and NICs.
Steven Porter, partner at Pinsent Masons, commented that the contribution non-dom taxpayers make to HM Treasury and the UK economy as a whole is ‘far more than most people realise’.
The remittance basis charge, which was introduced to extract more tax from non-domiciled individuals, brought in a relatively modest £226m. Porter warned that ‘non-doms will be keen to avoid being used as a cash cow. The government must be careful not to drive them out.’
Porter singled out the ‘deemed domicile’ provisions, which will remove non-dom status for those who have been in the UK for longer than 15 of the past 20 years, as one of the measures which may have ‘blunted the attractiveness of the UK to wealthy individuals’. These provisions are to be included in the second 2017 Finance Bill this week and will have effect from April 2017.
Separately, in a blog post, John Barnett, council member of the CIOT, wrote: ‘It is to be hoped that the release of these statistics might cause government to pause – at least once the 2017 legislation has been enacted – before introducing yet more reforms to non-dom taxation.’
Barnett also observed that while the publication of HMRC’s statistics was welcome, they gave far from the complete picture. ‘We still do not actually know how many non-doms there are. The figures merely give data for those non-doms who file self-assessment returns. We do not know whether these are the same individuals each year. We do not have figures for non-doms who do not (or have no need to) file a tax return. And we do not have figures for those who could claim non-dom status, but choose not to do so and give no indication of this on their tax return.’
HMRC’s non-domiciled taxpayer statistics, released in August, show non-domiciled taxpayers in the UK contributed a total of £9.3bn in tax receipts, comprising income tax, CGT and NICs.
Steven Porter, partner at Pinsent Masons, commented that the contribution non-dom taxpayers make to HM Treasury and the UK economy as a whole is ‘far more than most people realise’.
The remittance basis charge, which was introduced to extract more tax from non-domiciled individuals, brought in a relatively modest £226m. Porter warned that ‘non-doms will be keen to avoid being used as a cash cow. The government must be careful not to drive them out.’
Porter singled out the ‘deemed domicile’ provisions, which will remove non-dom status for those who have been in the UK for longer than 15 of the past 20 years, as one of the measures which may have ‘blunted the attractiveness of the UK to wealthy individuals’. These provisions are to be included in the second 2017 Finance Bill this week and will have effect from April 2017.
Separately, in a blog post, John Barnett, council member of the CIOT, wrote: ‘It is to be hoped that the release of these statistics might cause government to pause – at least once the 2017 legislation has been enacted – before introducing yet more reforms to non-dom taxation.’
Barnett also observed that while the publication of HMRC’s statistics was welcome, they gave far from the complete picture. ‘We still do not actually know how many non-doms there are. The figures merely give data for those non-doms who file self-assessment returns. We do not know whether these are the same individuals each year. We do not have figures for non-doms who do not (or have no need to) file a tax return. And we do not have figures for those who could claim non-dom status, but choose not to do so and give no indication of this on their tax return.’
