Note lefties all: The non-domicile regime is credited with encouraging many wealthy foreign nationals to base themselves in the UK, educate their children here, establish businesses and create employment. Preserving the non-dom regime for short-term visitors to the UK is a welcome suggestion which is intended to minimise the impact on the movement of people to the UK to carry out short-term working assignments; however a system which encourages people to leave the UK after a few years means that many will simply choose not to come in the first place. The value to the economy of wealthy families establishing themselves in the UK for longer periods should not be underestimated. Non-dom families will often make significant investments in businesses resulting in the creation of employment resulting in additional PAYE and NI collected, support UK charities and add to the economy as a whole by spending on these businesses, the education of their children and funding their lifestyle generally. Even though the UK tax system allows them to choose to pay the remittance basis charge of up to £90,000 per year instead of paying tax on their worldwide income, these families often still pay significant amounts of UK tax and add to the UK economy through their own, often significant, spending here. Long-term residents will also be subject to UK Inheritance Tax on their worldwide assets so this measure already helps to balance the equation. All of these factors should be considered by any government wishing to abolish the regime. The tax regime was purposefully designed to make the UK attractive to retain talent and to encourage those who can contribute to our society to move here.
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