Wealthy UK residents who are not domiciled in the country will be forced to pay higher charges if they want to keep their tax privileges, the government announced yesterday.
Non-doms can choose to be taxed on a “remittance basis”, which means that they are only takes on overseas income and gains that they bring to the UK and not on assets held outside of the country.
In his Autumn Statement, George Osborne said individuals who have resided in the UK for 12 of the past 14 years will now have to pay £60,000 a year to keep this status, up from £50,000 previously.
There is also a new higher charge of £90,000 for those who have been in the UK during 17 of the past 20 years.
However, the charge for non-doms living in the UK for seven of the last nine years has stayed at £30,000.
The move is expected to raise £120m in 2017-18 although critics warned that it could lead to a further exodus of wealthy individuals.