Non Dom, or not Non Dom, that is the question

purch

I think what Mr Balls-Up was tring to say in the hastily and badly edited clip from a few months ago, was that the rules need to be looked at and possibly changed in a way that would bring them more in line with our competitors but without causing a large loss to the exchequer.

I can't think any sensible person would disagree with that.

Why Millifool wants to make Non-Dom a major talking point, or why the Conservatives want to try and invent a discrepancy between Balls-Up and his boss by editing the tape is a mystery as neither will gain much from doing so.

Generali

I've had a pretty good look and I'm yet to find any creditable source to put numbers to this. There may well be a chunk of non doms paying extra tax as a result of their status as it's too much effort to change.

Hell, this website makes a fortune out of people having the same attitude to their gas bill.

antrobus

vivatifosi wrote: »

...What do you think?

That it's not a very exciting question.

On the scale of Really Important Tax Issues That Need Sorting Out it's pretty much down there at the bottom. Stick an extra penny on the basic rate and you can raise £5bn. Start mucking about with non-doms, and you might get a few extra hundred million. Or possibly nothing at all. Or possibly less than you started off with.

cells

chewmylegoff wrote: »

Not much and this is exactly what hedge fund managers do.

However, non-doms are taxed on a remittance basis so if they transfer money into the UK (which includes withdrawing cash from an offshore bank account using a UK ATM or buying something in a UK shop using a credit card issued offshore) then they have to pay UK income tax on the amount remitted.

Whos to know?

Also assuming its worthwhile there could be ways around that

For instance....buy a flat for £1m
have your pal or your offshore company or santa clause buy it off you for £2m

A million of UK money to spend

princeofpounds

If he would have remitted £1m to the UK to fund his ridiculous lifestyle he would have paid about £450,000 tax on that as a non dom - as a non resident this goes out of the window. Do we care that the UK loses that revenue?

If you have any sense, you don't remit any income at all to the country.


Simply get your bank to give you a massive loan, secured on the exact same amount of cash you hold offshore. Only remit enough income to service the interest, which is going to be much cheaper and slower to pay than any tax.


I have said this so many times on the board, and people/politicians never really seem to cotton on...


The REAL '1%' don't have any income or indeed much direct personal wealth in the UK.


The people who get really hammered by the top tax brackets are typically the high-end professionals, the '1-2%' if you like. Totally misses the global rich.

chewmylegoff

cells wrote: »

Whos to know?

Also assuming its worthwhile there could be ways around that

For instance....buy a flat for £1m
have your pal or your offshore company or santa clause buy it off you for £2m

A million of UK money to spend

Well if you were non dom you need to get that £1m into the country first if this scheme is to work. So you need to transfer in £1.8m first, pay £800k income tax (45% on the £1.8m remitted). You need to pay £44k stamp duty as well plus another £36,000 income tax on the money remitted to the UK to pay the stamp duty.

Then the gain of £1m would be subject to 28% CGT, so that's another £280,000 tax. And your "mate" (you) has to pay another £150k in stamp duty.

So, to summarise, you end up paying a total of £1.31m in tax in order to get £2m into the UK. To be fair this is slightly less than the £1.49m tax you would pay if you just remitted £3.31m directly.

TheBlueHorse

why can't people understand that the super wealthy are not constrained in the same way other people are. If they don't like something, they can move (with ease) anywhere on the planet. New York, Los Angeles, Paris, Sydney, Greek Island - whatever. They will go and take their enormous wealth (which the spend) and jobs they create with them.

Why are labour such a bunch of moronic, jealous charlatans.

are the poor ignorant because they are poor, or are they poor because they are ignorant.

tincans6

N1AK wrote: »

Have you got any facts or figures comparing the number of people who would benefit from the existence of non-dom status that move to Australia vs the UK...

:rotfl: sorry, I forgot, ofcourse you won't. You're just making stuff up and passing it off like it's considered opinion as usual.

I doubt you even have a clue what the laws regarding this kind of thing in Australia are, but don't let that stop you using them as an example. Of course, it would be a terrible example that highlights your lack of knowledge because their non-resident tax rules allow for most (if not all) the shenanigans non-dom status does in the UK with very little change in behaviour for someone super-wealthy.

Australia is a good example - huge planned immigration over the last 4 decades, so that currently 28% of the population were born overseas - and this doesn't include anyone who has a parent who was born overseas.

Do they have a special tax status for non - domicile ?

Of course not - unless you fit into a fairly narrow category of short term residence, you will be tax resident and taxed on your world wide income.

Perhaps that's because Aussies tend not to be such gutless cowards, cringing, bowing and scraping to the rich and powerful.

What a bunch of spineless, lily-livered suckholes the British have become - where they can't see the difference between right and wrong and everything is measured by how much it costs (even when we don't know).

It's ****** risible.

System

I don't care how many obscenely rich people there are making billions, some of which comes to this country.

No one else has any ideas for generating wealth, and most politicians seem capable only of taking other people's money and then spending it.

tincans6

TheBlueHorse wrote: »

. New York, Los Angeles, Paris, Sydney, Greek Island - whatever. They will go and take their enormous wealth (which the spend) and jobs they create with them.

All places where they would be taxed like any other resident of that country.