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Non domiciles
Jane Kennedy, recently appointed Financial Secretary to the Treasury, confirmed, in answer to an oral question, that the tax status of non domiciles would be kept under 'very close review'. She added in response to another question that 'fairness in the tax system is one of our primary objectives, but it is also important to promote the UK's competitiveness, by remaining an attractive place to do business'.
Taxation's conclusion? It's back on the 'too difficult' pile.
Non domiciles
Jane Kennedy, recently appointed Financial Secretary to the Treasury, confirmed, in answer to an oral question, that the tax status of non domiciles would be kept under 'very close review'. She added in response to another question that 'fairness in the tax system is one of our primary objectives, but it is also important to promote the UK's competitiveness, by remaining an attractive place to do business'.
Taxation's conclusion? It's back on the 'too difficult' pile.
Another question concerned the tax treatment of private equity partners, to which Ms Kennedy replied that the review was 'under way and that it will report' at pre Budget time. She did not want to be drawn into a discussion on the subject but said that 'estimates of the tax loss to the UK as a consequence of the use of the remittance basis by those who are not domiciled in the UK are not routinely made'. She said that 'individuals claiming that they are resident, but not domiciled declare approximately £9.8 billion in taxable income, which leads to a UK tax liability of about £3 billion'.
See 'What a kerfuffle!' by Margaret Connolly, Taxation, 26 July 2007, page 97 for further comment on private equity.
Hansard, 12 July 2007, vol 462, no 123, col 1605W
