He’s expected to announce what he hopes will be a vote-winning pledge today, scrapping the 18th Century tax loophole allowing “non-domicile” UK residents to avoid paying tax on worldwide income in the UK, an advantage not afforded UK residents with international business interests. Roughly 100,000 tax payers currently take advantage of the rule, and there’s controversy regarding what exactly constitutes a non-domicile residency, with some non-doms enjoying the tax shelter simply having lived abroad for a few years, having an overseas bank account or - according to the Guardian - just an overseas newspaper subscription.
Critics of the move point out, however, that non-doms contribute considerable sums on British earnings to the Government, and that the policy risks a flight of high-networth individuals from London. Combine this with a mansion tax… and I’m sure some agents are wondering what a Labour government might do to the top end of the London residential market.
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