Govt "silent" on cost of residence and domicile plans

News Article - 12 December 2007
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The government has remained "silent" on how its new consultation on residence and domicile will affect the UK economy, claims Grant Thornton.

Chris Mills, director of advisory firm Grant Thornton, said that the government acknowledged the £12 billion contributed in gross domestic product and the £4 billion in tax revenues by non-domiciles.

However, if the £30,000 levy is introduced for non-domiciles, Mr Mills claim this could lead to 15 per cent of non-domiciles leaving the country and the government has not stated how this would affect the UK economy.

Peter Ashby, director of the firm, claimed that the £30,000 levy would actually equate to £50,000 as non-domiciles would have to remit funds in order to pay the charge.

He commented that US citizens and green card holders would be "bemused" as the charge is not strictly a tax and therefore not balanced by other foreign tax liabilities.

The government has announced that for non-domiciles who have been living in the UK for over ten years, a higher contribution should be charged.

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