15 erring recruitment offices penalized in 3 months    MHRSD: 80% of recruitment offices are non-compliant with regulations    GACA chief chairs 16th meeting of the Steering Committee on aviation's strategy    Alkhorayef praises advancements in Al-Kharj food industries sector    At least 50 Palestinians killed in Israeli strikes across Gaza    Trump claims meeting with China after Beijing denies any trade negotiations    Mass food poisonings cast shadow over Indonesia's free school meals    Police fatally shoot man at Toronto's international airport    Saudia Group signs deal with Airbus for flyadeal's first wide-body aircraft    Saudi non-oil exports surge 14.3 percent to SR26.11bn in February    Ministry of Justice launches centralized court model to enhance judicial efficiency    Saudi Arabia elected chair of Asia region of World Meteorological Organization    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Jennifer Lopez dazzles in Jeddah with a Formula 1 performance    Saudi Arabia open to expanded 64-team World Cup in 2034, says sports minister    Average life expectancy in Saudi Arabia rises to78.8 years    Super Max Verstappen scorches to pole with record lap in Jeddah    Film Commission launches 'Cinema' initiative to enhance content    Famed Philippine film star Nora Aunor dies at 71    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



UK wealth industry fears tax squeeze on non-doms
Published in Saudi Press Agency on 25 - 02 - 2011

Awwal 22, 1432 H/Feb 25, 2011, SPA -- Britain's government is under pressure to levy more tax on the offshore wealth of residents claiming foreign roots, forcing money managers to dilute reliance on London's colonies of rich expatriates, according to Reuters.
The government unveils its next annual budget in March and is expected to update a review launched last year of the taxation of people who are resident in the UK but claim links elsewhere and have assets and income overseas.
While few expect the government to entirely abolish a loophole for non-domiciled residents that exempts them from tax on overseas wealth unless remitted to the UK, some proposed tightening is seen as likely.
At stake is a competitive advantage enjoyed by London wealth managers over European peers. Many thrive off running money offshore for thousands of highly paid foreign financiers working in the City as well as less economically active but rich expats based in London in order to take advantage of the tax regime.
The model is reinforced by London's links with Britain's Channel Island tax havens of Jersey and Guernsey, where many wealth managers have subsidiaries running clients' assets beyond the reach of UK tax authorities.
"We've got a big UK resident non-domiciled community of clients based out of our Channel Islands office. It's very difficult to speculate on how they might change things, but generally from a wealth management perspective, it's a concern," said Jeremy Croysdill, head of tax at Kleinwort Benson, a London investment manager owned by RHJ International.
"It's prudent for UK wealth businesses to diversify outside the UK market," said Paul Patterson, head of operations in the UK, Channel Islands and Caribbean for Royal Bank of Canada's wealth arm.
He said uncertainty about the government's intentions had contributed to a decision by the bank to direct expansion efforts into emerging markets and towards UK onshore clients, reducing its focus on resident non-domiciled customers.
So-called non-doms enjoyed total freedom from UK taxation on their overseas wealth while residing in Britain until 2008 when the then Labour government brought in a 30,000 pounds annual levy for those resident for more than seven years.
The new coalition government, which came to power last year, is under pressure to raise more tax as it grapples with deficits, and many in the financial services, legal and advisory industries fear further tightening.
Some warn a hardening of the rules could start an exodus of their high-paying clients to other jurisdictions such as Switzerland. "The danger is these people will up sticks and go ... My great fear is we're going to lose people we should keep, and keep the people we should lose," said Ronnie Ludwig, a partner in the private client team at accountants Saffery Champness.
According to British government figures, there were about 16,000 fewer non-doms registered in the UK in 2008-9 from a year earlier, implying the new restrictions had driven significant numbers away.
However, a source at Britain's tax department, the HMRC, said the drop reflected an off-trend spike in non-doms registered during 2007-8, and the long-term momentum is still increasing.
Sophie Dworetzsky, a partner specialising in private client wealth management at law firm Withers, said the most significant impact of uncertainty over the non-dom status is the fact it is discouraging wealthy migrants from coming to Britain.


Clic here to read the story from its source.