12 Feb, 2008
Helen Pow - 11-Feb-2008
Conservative shadow chancellor George
Osborne has urged Alistair Darling to introduce the £25,000
flat rate non-dom tax proposed by the Tories and abandon the
£30,000 charge he announced in his pre-budget report.
Darling's plans, to charge non-domiciled residents an annual
£30,000 after they have lived in the UK for seven years, have
been attacked by the City of London and trade and investment
minister Lord Digby Jones broke ranks last week to warn that they
would encourage wealth-creating individuals to leave the UK.
In a letter to Darling, Osborne says his solution to introduce an
annual levy of around £25,000 with no further tax changes for
at least a parliament strikes the "right balance between
fairness and competitiveness".
He says: "I urge you to abandon these proposals and instead
implement the original Conservative proposals that I announced in
October. The principles underlying any changes to the domicile tax
rules should be simplicity and certainty.
"That is part of the reason why my proposals were broadly
welcomed at the time by both tax professionals and the City of
London. In contrast the proposals set out in the Treasury
consultation document fail to meet either of those principles. It
is not too late to abandon your ill-thought out and badly conceived
Osborne also urges Darling to take into account a report put out
yesterday by the Society of Trust and Estate Practitioners which
found over half of the wealthiest individuals in the UK were either
leaving or planning to leave Britain as a result of the proposed
changes. The report also estimated the plans would cost the
Government over £2bn rather than raising £800m as