Budget 2008: No Concession For Non_UK Domicile Foreigners Tax

Budget 2008: No Concession For Non-UK Domicile Foreigners Tax

In in his pre budget speech in October 2007, Chancellor Alistair Darling announced that he would be introducing a levy on non-UK domicile foreigners who are resident in the UK.

In short, non-UK domicile foreigners who live in the UK for more than 7 years would be given the option of either declaring overseas earnings in the UK for tax purposes or have the option of paying a £30,000 levy.

Many were hoping that this would be removed in his Budget speech today as there is a mass exodus of wealthy foreign nationals possibly looking to leave the UK.  However, in his speech today, the Chancellor confirmed that there would be no u-turn for non-UK domicile foreigners who are resident.

He said:  “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.”

The Chancellor added that the £30,000 charge should be creditable against foreign taxes, and children will be exempt from paying it and it is effective from 6 April 2008.

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