Party Leader, Ed Miliband, has announced that Labour would scrap the UK’s non-domicile rule if elected from April 2016.
Dubbed an arcane 200-year old loophole, the abolition of the rule, allowing many of the UK’s richest residents domiciled abroad to avoid paying tax in the UK on their worldwide income was first mooted by Labour in 2013. So-called temporary residents will still qualify as non-domiciliaries.
Critics will claim that abolition of non-domicile status, together with their plans for a mansion tax and a 50p top rate of tax will generate an exodus of the wealthiest abroad.
For further information, contact Wealth Planning specialist, Robert Drysdale.
