We commented for Accountancy Age on Labour’s proposals to abolish the non-domicile status.
‘The move represents a political and financial gamble, according to Top 50+50 firm BKL.
“There are many financial unknowns including the level of overseas income and gains that go untaxed under the current system (for they are quite properly not reported),” it stated.
These ‘unknowns’ flagged up by BKL include: the planning including asset shifting which “would undoubtedly be undertaken in the face of such a proposal”; the number of individuals currently resident in the UK and paying the non-dom user charge “whose response to such a change would be to up sticks and leave”; the number of individuals who in the future would be deterred from locating to the UK; and “crucially”, according to BKL, the effect on the wider UK economy of pulling out the welcome mat from under the feet of a numerically small but wealthy and influential group of people.’