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Friday
Jul092010

£30,000 Non Dom Charge Brings in £130 Million

As you may know, the former Labour government brought in measures to ensure that non doms paid a flat charge for being able to live in the UK.  The amount is the equivalent of a flat rate tax, so it does not vary from person to person.

The most interesting thing about the situation is that it was originally stated the tax would bring in around £650 million per year.  Needless to say it doesn’t take a lot to work out that the actual figure collected is just a fifth of the amount Labour claimed would be collected.

The new coalition government did not seem to be impressed with the results, with the term ‘flea bite’ used by the Liberal Democrats to describe the unimpressive results.  The charge was not well received at the time it was originally mooted.  I recall some experts saying that the charge would drive people out of the UK, rather than simply collecting a tax from every single one.

And indeed it would seem from the latest figures that this has indeed occurred.  Some people have left the UK rather than pay the charge, and I have also read that fewer people have decided to live in the UK who may have otherwise done so as non doms.  This seems to have occurred as a direct result of the non dom charge.

I will be watching closely to see how the new coalition government reacts to the data, and whether or not it elects to keep the charge in place.  I have a feeling they will ditch it as soon as they can, but it does remain to be seen.

Call us at St Matthew now if you wish to discuss your own tax situation.

 



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