Weasel words in the FT.   Try to guess: what do you think wealth managers reckon on the Non Dom tax policy?  Yup, you guessed it:

Andrew Rodger, Stonehage executive director, said: “The stated intention of the government was to increase tax from resident non-doms and simplify the regime. Our survey shows that the rules are unattractive and that non-doms are leaving the UK or not arriving any more, resulting in a tax loss for the Treasury within a relatively short time.”

However, it turns out that complexity and uncertainty are the big issue – “the confidence of the ultra rich could easily be regained, however, with an extensive simplification of the tax rules and a pledge not to alter the system again in the near future”.

What I found weaselly was that all we have seen is a slowdown in arrivals, and some departures.  Nondoms are still, it seems, arriving in the UK, but just at a slower rate.  Their numbers have been growing at a 4% pace; now that might be slower.  The other weaselly implication is that the Treasury did not expect some change in behaviour.   No, they did.  From a sub-article:

Preliminary figures from Revenue & Customs show that 4,200 people paid the charge for the 2008-09 tax year. That compares with the Treasury’s 2007 forecast that almost 4,000 individuals would pay the charge, a further 14,000 would start paying UK tax on offshore income and – over the long term -almost 3,000 non-doms would choose to leave the UK.

The ones that leave are likely to be those for whome 30k makes staying a marginal decision.  Not the very richest, I would think. Though who is rich?  Let us consult Simon Heffer. Not the people paid over 150k per annum; no – they are the ‘so-called’ rich, people that Labour has fooled us into thinking are rich.  Since 99% of the population is below that level, the answer seems to be the rich do not exist.  So stop making a fuss about them.


2 thoughts on “Wealth managers opposed to non dom tax policy shock

  1. “the rich do not exist” – brilliant line.
    There’s a treasure trove of ill-informed comments after the Heffer article too. Though Heffer does seem to not be keen on Tory economic policy either – the subheading reflects your previous post about Osborne in the FT. There just doesn’t seem to be anything consistent coming from the Conservatives on Economics. My favourite is the “new economy built on savings” line up against the “interest rates as low as possible” idea. My mind starts going into Dillow-esque rants about what sort of compulsion the state will bring to bear to stop us borrowing whilst keeping the cost of borrowing low, and why the state would know any better than us anyway…

    1. If someone ever needs to ask me why as a pro-capitalist, pro-free market thinker, I am not more of a natural Tory, I just point them towards the comments below Heffer articles. And any copy of the Spectator, ever.

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