THE NUMBER of UK residents registered as non-domiciled for tax purposes has fallen by a fifth in just three years, raising fears that wealthy individuals are being driven away from Britain.
Since 2008, long-term UK residents with non-dom status have had to pay an annual levy of at least £30,000, increasing to £50,000. The number of non-doms has since fallen by 17 per cent to 116,000 at the end of the 2010-11 tax year, according to figures obtained under the Freedom of Information Act.
“The UK’s tax code is seen as becoming increasingly hostile to high net worth individuals, especially those from overseas,” said Jason Collins of law firm Pinsent Masons. “There is a conflict here with the Prime Minister’s promise to roll out the red carpet for wealthy foreigners.”
Non-doms pay tax on UK earnings and gains, as well as all other taxes such as Vat – but not on earnings and investments generated overseas.