'Non-doms' may be hit with higher bills

Higher-than-expected taxes on wealthy so-called "non-doms" who shelter in tax havens while living in Britain are being considered by the Treasury.

A consultation paper issued yesterday said there could be additional taxes on those non-domiciled in Britain for tax purposes. In the pre-Budget report, the Chancellor, Alistair Darling proposed a tax of £30,000 a year on non-doms who had been living in Britain for seven years.

The consultation paper issued by the Treasury said it would be possible to amend the new charge to apply it without a seven-year grace period. A higher charge of £50,000 could be imposed for those who had spent 10 years in Britain, or a 17-year time limit for non-domiciled status could be imposed.

The Liberal Democrat leadership contender Chris Huhne said: "This is a scheme to levy a pin-prick poll tax of £30,000 a year on UK residents who come from overseas to keep their offshore earnings tax-free. The number of non-domiciled UK residents has doubled since Labour took power in 1997, and ministers must not be swayed by the substantial contributions to the Labour Party that many leading members of this community make. It would be much better for HM Revenue and Customs to negotiate individually with non-domiciled residents concerning the amount of tax they believe they should pay, as happens in Switzerland. This would land far greater sums from billionaires than a £30,000 levy."