Non-domiciled residents of the UK face paying an extra annual charge of £20,000 after 12 years, in a move the Chancellor said would bring in more than £200m.
At the moment, those who hold a special tax status from being resident in the UK while not domiciled in the country have to pay £30,000 a year after seven years – a stipulation that was introduced in 2008.
This will now increase to £50,000 after a further five years, George Osborne said yesterday. He added that he had "always believed that they should pay something in return for their special tax status".
However – in a move that Mr Osborne said would "encourage investment in our country" – non-doms will no longer be taxed on their foreign income or capital gains remitted to Britain if they are invested here. A further £1bn a year will be raised through a clampdown on tax avoidance, which includes measures to prevent the evasion of stamp duty land tax.
The Chancellor also announced moves to prevent disguised remuneration, such as companies giving employees lifetime loans they never have to repay, and the tightening of legislation on capital tax.