STEP’s comments were in response to Chancellor Osborne’s Budget, unveiled today, which contains a £20,00 increase in the annual charge for non-doms who have lived in the UK for 12 years or more, and brings it to £50,000 from £30,000.
The Government said this will raise an extra £200m in tax revenue.
In announcing the increase, Osborne noted that non-doms who use income they bring into the UK to invest in British businesses will be exempt from paying the annual charge on top of the normal rate of income tax.
STEP Chief Executive David Harvey said: “We have seen the numbers of non-doms declining in the UK since the imposition of the remittance basis charge in 2008, and it is hard to see this trend reversing in the wake of an increase in the charge.”
He added: "We would like to see a full impact assessment of this policy published in terms of what contribution non-doms make to employment and payment of indirect taxes in the UK rather than the current focus on the direct taxes they pay or do not pay.”
STEP "welcomes" the announcement that the Government plans to consult on the detail of the non-dom measure in June, Harvey went on, and "looks forward to contributing positively to that process".
The Society of Trust and Estate Practitioners is the global professional body for practitioners in the fields of trusts and estates, executorship and related issues. Internationally it has more than 16,500 members.
