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Law Society attacks non-dom proposal

 
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The representative body for solicitors in the UK is appealing to the government to defer the implementation of the non-domiciled resident tax charge, to allow a period of deliberation.

The crackdown on foreign residents who enjoy “non-dom” status will be brought in next month. The new tax regime includes a £30,000 levy and will apply after seven years spent the UK.

Law Society’s President, Andrew Holroyd, said: “Not only will law firms risk losing important talent from their ranks, many of their clients will be seeking urgent guidance on what has so far been a very vague set of proposals.

“The real disappointment is that the government did not consult first and are now imposing on non doms, many of whom are linked to the legal profession, a regime which is as yet still not that clear but is better than it was. The beneficial changes will be lost however because of the way the process has been conducted.”

Vince Cable, Liberal Democrat deputy leader and shadow chancellor, was equally as critical, saying: “Super-rich non-domiciles should be allowed their tax-free status for seven years, but after that they should be treated in the same way as other British residents and made to pay their fair share of tax.

“Non-domiciled status does provide some unjustified tax loopholes. But the flat-rate charge proposed by the government and the Conservatives is not the way to end this scandal.”

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