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20 March 2002
Issue: 3849 / Categories:

Tax privileges of non domiciles under attack?

Tax privileges of non domiciles under attack?

Rumours are rife that the favourable tax status of non domiciles who are resident in the United Kingdom is to be attacked by the Government. Taxation, 14 March 2002, page 571 reported two written questions concerning when the Chancellor planned to end non-domiciled status for foreign nationals resident in the United Kingdom, to which a non-committal answer was given, and there has been various speculation in the national press about this possibility. City law firm, Macfarlanes, questions the sense of any such proposed changes. John Rhodes, head of Macfarlanes private client department says that: 'Treasury sources indicate that there will be a change in the rules so that any person who has been resident in the United Kingdom for more than four years will become taxable here on world-wide income and gains, regardless of domicile'. He predicts that 'unless there is substantial lobbying of the Government by the major investment banks and other overseas business over the next few weeks, change is almost inevitable'.

Individuals would not be the only ones affected by changing the rules, as offshore settlements would also have to be in the firing line.

Some rumours suggest that any change will be subject to prolonged consultation, but it is impossible to judge the truth from the fiction. One can only lament the current trend towards Government by unofficial 'leak' rather than by Parliamentary announcement.

Issue: 3849 / Categories:
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