Legal Information Centre

14 August 2008 by Mary Heaney

Darling plans non dom tax despite lawyers' protests

Chancellor Alistair Darling has said he will push on with plans to tax non doms, despite protests from lawyers.
Despite pressure from tax lawyers, chancellor Alistair Darling has vowed to press ahead with plans to charge non-domicile taxpayers.

In yesterday's Budget, Mr Darling confirmed that non-doms who have lived in the UK for seven of the past ten years will have to pay £30,000 a year.

This is despite the fact that many tax lawyers had warned that the move could mean a high number of rich individuals leave the country.

However, tax lawyers did welcome the news that Mr Darling was set to alter some for the rules relating to the charge for non doms.

He revealed that the charge will be regarded as a tax, not a free-standing levy. Tax lawyers explained that this meant that some non doms would therefore be able to claim tax relief.

In addition, non doms on low incomes will be charged at a different level.

John Cullinane, a tax expert from the Chartered Institute of Taxation, commented: "I think we are frightening people off without even collecting any money, which is not a good trade off."

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