UK Politics
General Discussion for politics in the UK.
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This non-dom crackdown is so fucking stupid because it will achieve the square root of nothing.
I wouldn't say it's a crank down it's more a very simple change in the law that doesn't really require much effort or expense from the government.
If it achieves nothing at all then there's no reason whatsoever for you to care about it.
The evidence suggests it will just end up costing us more.
If the tax take is lowered, that affects us all, right?
What do you mean by lowered tax?
The percentage of tax that people are required to pay has not changed with this policy all it's changed is rules to exemption.
Previously non-doms weren't required to pay any tax because they didn't live in the UK full time, this change simply requires that they do pay tax but the percentage they pay is the same percentage as they would pay if they like lived the UK full time.
For everyone else, including millionaires that do live in the UK, this law has literally no impact on them.
Non-doms pay foreign tax on their foreign income and UK taxes on their UK income. If they decided to leave the UK, the tax revenue the government receives would be lower, therefore the policy overall will end up costing us more and there's no practical benefit.
I've got no time and sympathy for non-doms, but the policy won't achieve anything.
No that's incorrect.
If they are currently claiming non-dom status then they don't pay tax on UK income, that's the point. They have interests in the UK but because they technically don't live here they don't pay anything.
What is being proposed is to move it over to the system you have just described.
I have a cousin who is non-dom except he doesn't have any UK interests so there's no missing tax in his case but it does mean they actually understand how the law works because I was interested and asked him when all this started. In his case this won't make any difference because he doesn't have any earnings in the UK.
The company he works for is American and is operating in Western Africa.
No, they literally do pay UK taxes on their UK income. It would be illegal not to.
The proposed change means that they would have to pay UK taxes on their foreign income as well as paying the foreign taxes.