Non-doms tax turnaround
The Chancellor has said that extra plans the Government had for raising extra revenue through taxing non-domiciled residents in the UK are to be set aside


The Chancellor Alasdair Darling has changed his plans to demand further financial information from non-domiciled foreigners (non-doms) living in the UK, as well as changing the rules surrounding the payment of £30,000 levy on non-doms who have been resident in Britain for over seven years. Draft legislation originally appeared to be clamping down on some perceived loopholes in the legislation and outlined how non-doms would need to provide the Government with details of their foreign earnings, and pay tax on income and capital gains from offshore trusts, as well as the levy. These proposals worried many businessmen in London, who feared an exodus of wealthy non-doms to other countries with more lenient tax laws which could subsequently affect both the economy and the housing market. But on Tuesday the Treasury said proposals to tax the foreign earnings of non-domiciled workers would be dropped, along with demands that they disclose income from offshore trusts. It also said that there would be no charges for money brought into the UK to pay the £30,000 'non-dom' levy. In addition to this, the Treasury said it would also go on discussing ways to allow the £30,000 levy to be offset against US tax. Taxes non-doms will now have to pay will now be judged only on UK earnings and money brought into the country. Yvette Cooper, the chief secretary to the Treasury, said: 'There have been some misunderstandings as a result of some of the detail of the consultation document, things that were never intended, and we've clarified that. We said at the outset we would consult on the detail and would consult on the draft clauses. I think that's a good thing to do.' George Osborne, the shadow chancellor, said the Chancellor was unfit for his job: 'In times of economic uncertainty people need a chancellor who can demonstrate strength of leadership and consistency of judgment. With Alistair Darling, we have neither.'
Sign up for the Country Life Newsletter
Exquisite houses, the beauty of Nature, and how to get the most from your life, straight to your inbox.
-
Rodel House: The Georgian marvel in the heart of the Outer Hebrides
An improving landlord in the Outer Hebrides created a remote Georgian house that has just undergone a stylish, but unpretentious remodelling, as Mary Miers reports. Photographs by Paul Highnam for Country Life.
By Mary Miers
-
380 acres and 90 bedrooms on the £25m private island being sold by one of Britain's top music producers
Stormzy, Rihanna and the Rolling Stones are just a part of the story at Osea Island, a dot on the map in the seas off Essex.
By Lotte Brundle