The Senior Lecturer will disagree

George Osborne’s tax policies have cost Britain billions, because the super-rich are fleeing the country and taking their wealth with them, statistics have revealed.

The number of non-doms – those not legally domiciled in the UK but who obtain tax advantages here – fell to a record low of 78,300 last year, from 98,500 in the previous year, figures from HM Revenue and Customs show.

The amount of tax directly contributed by non-doms fell from £9.5 billion to £7.5 billion over the same period. Experts said that a string of tax policies introduced under the former chancellor were principally to blame.

Because of course people don’t move for tax reasons and even if they do it’s a very small number of people and they’re the sort who only increase inequality so it’s good they go. So there.

7 thoughts on “The Senior Lecturer will disagree”

  1. As someone mentioned on the other thread, this could just be down to the change in rules on who qualifies for non-dom status. If you’ve lived here for 15 of the past 20 years, you’re now deemed domiciled here for tax purposes. This kicked in from 6 April 2017, so it would only have shown up in the tax returns submitted last January.

    From the figures published, it’s impossible to know who has emigrated and who has merely been caught out by the new “deemed domicile” rules.

  2. I am a non-dom and years ago when I was making big bucks I got paid off-shore and kept the money in the old home country. No tax there as I was not a tax resident. No tax here as I was a non dom and money didn’t enter UK. Rules were changed. Hedge funds mostly settled as HMRC started sending threatening letters years later regarding some old schemes. Currently I do live in the UK for tax reasons, I am an EU citizen and a “tax exile”…ISAs, SIPPs. It helps that I am an Anglophile but if I could have the same tax benefits somewhere safe, cheap and warm…

  3. To be pendantic, while the number of non-doms and the tax revenue from them may have fallen, do we know how many of them have actually left vs how many decided to become UK domiciled? Is that in the stats?

    Having said that, 7.5bn is nearly 2p on the basic rate of tax. So the non doms are saving the average earner around £200-250 per year. Every single taxpayer in the UK is benefiting personally from their being non-doms here, paying some taxes here, rather than somewhere else.

  4. Are there any estimates of the number of ex-pats who have left to avoid 60% income tax, 45% income tax, £10k per annum tapered annual pension allowance, and so on?

    I assume that it would be very hard to distinguish those from ex-pats who’ve left for other reasons.

  5. As usual MSM blame the Tories. It was Brown who introduced the non-dom tax/fine and differing rates of stamp duty

    Like the good socialist he is, Osborne then kept increasing them.

    There was an interview of a non-dom in Telegraph in 2008/9 following Brown’s Tax. He was leaving as he foresaw the £30,000 pa was only a start. The £30,000 tax was ~what he paid his two live-in staff who had free board & lodgings, they would lose their jobs.

    Punishing the rich headlines trump economic reality for these politician fools

    The UK tax rules which concerns individuals who are non UK domiciled changed considerably in April 2008.

    The madness of the changes to the non-dom rules should be reversed. Even then, it will take a long time to regain confidence in London….Since the UK tightened its rules on non-doms the likes of Portugal, Spain, Cyprus , and Malta have all moved quickly into this market and successfully attracted billions which left here.

    Non-doms are same as those on holiday here, they spend, employ, pay vat, local taxes etc and are a net positive to UK. We should be welcoming them, not driving them out.

    Lefties: non-doms pay tax on UK earnings same as anyone else; your non-dom tax is a residency tax that all UK residents should pay by your “fairness” rules.

    Osborne & Hammond not abolishing, but increasing demonstrates how socialist they are.
    Same as Osborne & Hammond increasing Brown’s Pension taxes.

    “Not The Conservative Party” are exemplified by their Green & high tax/spend addiction.

    The Conservative Party should be advocating lower tax, smaller state and encouraging wealthy to live in UK

    Abolish Brown’s vindictive non-dom tax/fine

  6. @Andrew M “From the figures published, it’s impossible to know who has emigrated and who has merely been caught out by the new “deemed domicile” rules.”

    The people who do know are the advisors. And they say people are leaving.

    But this kind of argument is one the left always run. First they say the wealthy don’t pay enough tax. You point out how much tax the wealthy pay. The left respond by saying the wealthy probably ought to be paying even more and are probably fiddling their taxes. They have no proof of this but it’s a claim impossible to refute. The left say people don’t leave because of high taxes. You point out high profile cases like Lewis Hamilton. The left say that’s only one person and good riddance to him anyway. The left moan about companies having huge turnover but paying no tax. You point out that these companies have no profits because they pay huge bonuses to staff, who will be paying taxes at higher rates. The left claim the companies are probably paying fiddle bonuses that probably result in staff paying no taxes. They have no proof but it’s hard to refute such a vague claim.

    What ever facts are presented, the left just claim there’s some fiddle going on somewhere. They don’t need proof. Whatever taxes are paid, the left just claim there ought to be more.

    Scum like Murphy have been playing this game for years and the result is a nervous government desperate to prove how tough they are on countering phantom tax avoidance. And this Tory government have been tough. More anti-avoidance legislation, more restrictions on allowances, more complications, more spiteful anti business tax rules.

    The irony being that the left simply claim that the Tories “help their mates” on tax. And like everything else in this area, it doesn’t matter how much truth you try and add to the debate, the left just demand it isn’t enough.

  7. @Andrew C August 11, 2019 at 8:08 am

    …this Tory government have been tough. More anti-avoidance legislation, more restrictions on allowances, more complications, more spiteful anti business tax rules.

    The irony being that the left simply claim that the Tories “help their mates” on tax…

    Which is why they are stupid for not realising blackmailers come back for more if you pay them once. Tories need to go on attack and rebut left lies by explaining why non-doms are beneficial.

    Non-dom Chap in Tele I refereed to said he was here for part of each year and including staff in house wages, council tax etc spent £500,000 to £1,000,000 in UK every year. He sold up and left.

    Assume all are similar: 20,000 x £1,000,000 = £20,000,000,000 or £20Bn pa added to UK Economy gone.

    What will Javid do about £2Bn tax shortfall?

    Rethink or Increase Non-Dom tax to cover shortfall?

Leave a Reply

Your email address will not be published. Required fields are marked *