Super-Rich 'Will Simply Shrug off the New Fees' NON-DOMICILED

The Birmingham Post (England), October 10, 2007 | Go to article overview

Super-Rich 'Will Simply Shrug off the New Fees' NON-DOMICILED


Byline: By Tom Scotney Business Staff

Plans announced in the report to raise funds by levying a fee on people who declare themselves non-domiciled in the UK will lead to the vast majority of small businesses coming back into the tax fold, according to experts.

But wealthy foreign businessmen like Chelsea owner Roman Abramovich and millionaire foreign premiership stars will just shrug off the fee, they added. The Chancellor, in a move that led critics to accuse him of copying the Conservatives, announced a flatrate charge of pounds 30,000 for UK residents registered as non-domiciled for tax purposes.

People who are nondomiciled or not a resident of the UK can currently use the "remittance" basis of taxation, meaning income and capital gains arising overseas are only taxed here when the wealth is brought in to the country.

But from April 2008, non-domiciled UK residents who have lived in the country for more than seven years will have to pay pounds 30,000 to have access to the remittance basis of taxation, or face UK tax on all their worldwide income and gains.

Stephanie Churchill, senior tax manager at Grant Thornton, said the majority of nondomiciled residents were small businessmen and private citizens registered for tax reasons, who would have no option but to withdraw their money and enter the UK tax system. She said: "Under George Osborne's suggestions, it was said that only 15,000 of the 115, 000 nondomiciled residents would benefit from staying non-domiciled.

"With the higher fees announced pounds 30,000 by the Treasury compared to pounds 25,000 suggested by Osborne there's obviously going to be even fewer for whom it's worth it.

"So it seems the vast majority would be better advised simply to give up their status and enter the UK tax system."

Ms Churchill added that the said the superrich were likely to just shrug off the pounds 30,000 payments to take advantage of the benefits of the still-generous remittance tax system.

But for the rest, she said the only solution was to go to an accountant to go over the complicated details of the new proposals.

"What's going to need to happen is a costbenefit analysis, and there's still a lot of detail we need to know," said Ms Churchill.

"We've already come up with about 20 questions about how it's going to work. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Super-Rich 'Will Simply Shrug off the New Fees' NON-DOMICILED
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.