Statistics released by HM Revenue & Customs ("HMRC") show that non-domiciles ("non-doms") paid just under £9.4bn in tax in 2016/17, up £130m on the previous year’s total, and the highest on record since figures started to be recorded in 2007/08.
Paul Haywood-Schiefer,manager at Blick Rothenberg said, 'Non-doms and the tax they pay play an important role in this country’s finances. The regime is seen by many as outdated, but along with initiatives like Business Investment Relief, provides the UK with a great opportunity for inward investment, especially as many non-doms are flexible when it comes to where they live.'
He added, 'The rules have changed now to include a deemed domicile rule for long term residents, which will certainly have been the cause for much of the drop in the number of Non-doms living in the UK post 2015/16, and I’d expect there may be a further drop in 2017/18 when the figures are announced next year. Therefore, it will be important for the Government to ensure that the UK remains an attractive place for overseas individuals to come to live, work and invest in the future, especially in light of Brexit.'
Paul said, 'Despite non-doms representing just 0.3% of taxpayers (about 91,100 out of 30.8 million in the UK), they contribute tenfold that figure (a total of 3%) of the combined Income Tax, Capital Gains Tax and National Insurance. Despite this, the number of Nnn-doms is falling by 27,000 in a year.'
He added, 'In addition to the tax contributed, Non-doms also made significant investments into UK companies. Figures released show that in the 2015/16 tax year (the last year for which the Government have publish the statistics) Non-doms invested a total of £894 million in UK companies, giving a combined total of £2.4bn since the Government introduced the Business Investment Relief initiative to facilitate and encourage overseas investment into UK businesses.'
For more information, please contact Paul Haywood-Schiefer.