Budget 2008: Non-doms’ foreign investments left alone
Chancellor Alistair Darling has confirmed in the Budget today overseas incomes of non-domiciled individuals or families will not be taxed.
He confirmed the £30,000 non-dom charge for those living in the UK over seven years would remain.
Mr Darling told parliament: “We welcome the contribution made by people born outside the UK who choose to come and work here.
“They pay taxes on their earnings here and also pay tax on money they bring into the country from abroad.
“But for those non-domiciled individuals or families who have chosen to make Britain their home, I believe that it is right and fair that they should, after seven years, pay a reasonable charge to maintain the right to be taxed differently from other UK residents.”
However, he added the government would not seek to charge UK tax on offshore income or capital gains that is not brought into the UK.
The chancellor also promised to there would be no further changes to this regime for the rest of this parliament or the next.
The changes see an annual £30,000 charge on remittance basis users who have been resident in the UK for more than seven out of the past ten years, and the removal of tax free personal allowances for remittance basis users.
Those with income or capital gains from aboard of less than £2,000 will not face the charge.
