Jeremy Hunt scraps non-dom tax status
Jeremy Hunt has abolished the non-domicile tax status and says he will replace it with "a modern, simpler and fairer residency-based system". The chancellor adds the government will put the £2.7 billion a year raised as a result towards tax cuts. Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Category
🗞
NewsTranscript
00:00 Next, I turn to the taxes paid by those who are resident in the UK, but not domiciled here for tax purposes.
00:10 This is a category of people known as non-doms.
00:20 So, the government will abolish the current tax system for non-doms,
00:26 get rid of the outdated concept of domicile,
00:32 and I aim to please all sides of the House in all my budgets.
00:41 We will replace the non-dom regime with a modern, simpler and fairer residency-based system.
00:48 From April 25, new arrivals to the UK will not be required to pay any tax on foreign income and gains
00:57 for their first four years of UK residency, a more generous regime than at present
01:03 and one of the most attractive offers in Europe.
01:06 But after four years, those who continue to live in the UK will pay the same tax as other UK residents.
01:13 Overall, abolishing non-dom status will raise £2.7 billion a year by the end of the forecast period.
01:22 That is money the party opposite planned to use for spending increases,
01:29 but today a Conservative government makes a different choice.
01:33 We use that revenue to help cut taxes on working families.
01:39 (audience laughing)