The Chancellor George Osborne is considering introducing a new flat-rate levy of £25,000 per year to non-domiciled
individuals, or ‘non-doms’.
A nom-dom is someone who is a UK resident but who isn’t domiciled in the UK for
tax purposes. They may pay some UK taxes, but will not be fully taxed on their overseas earnings. There are approximately 120,000 non-doms currently residing in the UK.
The plan would help to accrue around £3.5 billion and would lift the income tax threshold to £10,000, easing the burden on middle earners.
The
taxation of non-doms has been under Government review for some time.
The new levy would replace the current £30,000 annual charge, which only applies to non-doms who have been living in the UK for over seven years, resulting in four out of five leaving the country before the seven years are up. Only £130 million was raised last year via this method.
The new £25,000 flat charge would apply to all non-doms, regardless of how long they have lived in the UK.
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