Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Non-domicile rules: An old chestnut

by
2nd Dec 2005
Save content
Have you found this content useful? Use the button above to save it to your profile.

Long ago, when the Tories were at the despatch box on Budget days, Gordon Brown declared his concern about the UK's domicile and residence rules. He's now had over eight years to think about them. But all he's done is publish a consultation paper in April 2003. After which there has been an awful hush.

This is not reasonable. It's not reasonable to those for whom this creates uncertainty in their taxation affairs. It's not reasonable either for those who think that these rules create a mass of loopholes. That this is so is beyond doubt. On 30 November two lawyers from establishment solicitors Mishcon de Reya said in an article on Mondaq.com 'If you are planning to come to the UK, whether short-term or permanently, you will discover a fiscal regime that can be as welcoming as any tax haven.'

The Pre Budget Report is widely expected to include more anti-avoidance provisions. Many of these will increase the regulation of existing practices, with all the consequent logistical and administrative problems that arise for all parties. In the face of this fact, and that much of the attack on avoidance has been focussed on what many consider the more productive elements of the economy it is surprising that Gordon Brown has persistently refused to move against a rule that is old, out of date, inconsistent with tax practice in much of the rest of the world and whose continued existence has no proven benefit to the UK economy. The calls for abolition of the domicile rules will increase whilst this situation persists, whether or not the issue is tackled in the PBR or not.

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.