'Non-doms' face clampdown

By DAILY MAIL REPORTER
Updated:

 

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SOME of Britain's richest foreign residents fear they are about to be hit by Budget tax changes for 'non-domiciles'. Well-known non-doms include Indian-born steel tycoon Lakshmi Mittal and Lord Paul, head of the Caparo Group.

Chancellor Gordon Brown is widely expected to press ahead with plans to toughen the tax regime for non-doms. He may publish a consultation paper with his Budget on Wednesday. Previous reviews have, however, come to nothing.

Non-doms in the UK enjoy a generous-tax environment, shared by only a handful of other countries, where they do not have to pay UK tax on foreign earnings kept overseas.

There are around 60,000 non-doms living here, and their legitimate avoidance of tax means the Treasury is missing out on several billions a year of tax revenue.

Although these wealthy individuals may command little sympathy, critics protest that clamping down on non-doms could seriously damage London's standing as a premier financial centre. Foreign investment bankers in the City would be among those hit.

The Baltic Exchange also believes that a move by Brown would damage London's shipping community, which earns £1bn a year for Britain, by provoking wealthy Greek shipowners to move their business elsewhere.

Mike Warburton, a partner at accountant Grant Thornton, said: 'Our economy is one of the most open and diverse in the world. We drive all this talent and industry away from Britain at our peril.'

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