Blitz Bureau
THE UK is to soften some planned changes to its controversial non-dom tax rule following concerns of a millionaire exodus. Speaking at a fringe event in Davos, Finance Minister Rachel Reeves said the Government would put forward an amendment after “listening to the concerns” of the non-dom community.
The changes come as new data estimates 10,800 millionaires left the U.K. last year amid a clampdown on the uber wealthy in the October budget. Britain’s 200-year-old non-dom regime permits people living in the U.K., but who are domiciled elsewhere for tax purposes, to avoid paying levies on income and capital gains earnings overseas for up to 15 years.
Speaking at a fringe event at the World Economic Forum in Davos, Reeves said the Government would soon put forward an amendment to the country’s Finance Bill, increasing the generosity of a rule which allows non-doms to bring money to the UK without paying significant taxes, according to CNBC.
“We have been listening to the concerns that have been raised by the non-dom community,” Reeves told The Wall Street Journal’s Emma Tucker when asked about recent departures of the ultra-wealthy.
“In the finance bill, we will be tabling an amendment which makes more generous the temporary repatriation facility, which enables non-doms to bring money into the UK without paying significant taxes,” she added. Reeves also sought to reassure wealthy overseas investors that the changes would not affect double-taxation agreements held between the U.K. and other countries.
“There’s been some concerns from countries that have double taxation conventions with the U.K., including India, that they would be drawn in to be paying inheritance tax. That’s not the case. We’re not going to be changing those double taxation conventions,” she said.
