Britain becoming a less attractive place for the international super-rich, could prove a threat to the countrys fragile recovery.

Britain becoming a less attractive place for the international super-rich, could prove a threat to the country's fragile recovery.

Less Tax?

MONEY TALK by Ronnie LudwigSaffery Champness

The levy has, however, contributed to making Britain a less attractive place for the international super-rich, which could prove a threat to the country’s fragile recovery.

According to research conducted in March 2010 by Cass Business School, the non-doms spend a total of £19bn in the UK each year, as well as contributing £4.5bn in income tax and £3.75bn in VAT and stamp duty.

However, at least 2% of them have already left since the introduction of the £30,000 charge and associated changes brought about in the Finance Act 2008.

About 25% fewer are applying to move to Britain, according to the same research.

Arguably, the loss in demand for British goods and services could far outweigh the benefits of £130m collected through the additional levy.

The more likely course of action, though, would be for the government to tighten the rules and increase charges for non-doms as a result of their review.

Here again, the government will be faced with a difficult balancing act between maintaining that ‘open for business’ sign the chancellor wants to see over Britain, with bringing in additional tax revenue.

An attack on non-doms will have side effects and could mean overall tax take goes down, rather than up.

EVERY BUSINESS OWNER IN THE UK TODAY IS STRONGLY URGED TO SPEAK WITH A TAX SPECIALIST TO DISCUSS WHAT ENTITLEMENTS THEY CURRENTLY HAVE AT THE FINGER TIPS BEFORE THE GOVERNMENT PUTS A STOP TO EVERY BENEFICIAL TAX AID.

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