Non-doms escape major crack-down in Budget

NON-DOMS breathed a sigh of relief yesterday as the Budget fell short of the tough new
tax avoidance measures some had been expecting.

Chancellor George Osborne’s Budget said the coalition will “assess whether changes can be made to the current rules to ensure that non-domiciled individuals make a fair contribution to reducing the deficit, in return for greater certainty and stability for those bringing skills and investment to the UK.”

But it fell well short of expectations that specific rules would be brought in which would, for example, drag non-doms into the inheritance tax net.

There had been suggestions that the government was considering a £100,000 entry levy on non-doms and a tightening of the rules that would bring them into the inheritance tax net. The issue has gained extra political significance after it emerged Tory donor Lord Ashcroft was not paying tax in the UK on his global interests.