Chancellor Jeremy Hunt announced in his Spring Budget that the government would ditch the “non-domicile” regime., which allowed multi-millionaire Basim Haidar and 68,800 other citizens to avoid paying UK tax on their overseas income for the past 225 years. This will raise £2.7 billion a year.
The Guardian’s wealth correspondent, Rupert Neath tells Hannah Moore about interviewing Haidar in relation to his decision to leave the UK due to the end of the out-of-home regime. From next year, people can only avoid tax for the first four years of being in the UK, up from the previous threshold of 15 years.
Haidar has formed a taskforce of 29 non-citizens who mostly plan to leave the UK before September because of the “punitive” tax changes. Ending the hiatus is self-defeating, Haydar believes, as overall UK taxes will fall amid an exodus of the ultra-rich.
Arun AdvaniAssociate Professor in the Department of Economics at the University of Warwick and an expert on tax and inequality, explains the changes and tells Moore why the data suggests that the vast majority of foreign nationals will not actually leave the UK.
Photo: BH Holdings
