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An elite of wealthy foreigners living in Britain faces paying billions of pounds in capital gains tax on UK-based assets, under far-reaching legislation being drawn up by the Treasury. The move has sent shockwaves through the wealth management industry, which says the measures could undermine the London art market, drive much of the private equity industry abroad and trigger the sale of property and UK shares worth billions of pounds.
The scale of the Treasury’s ambition to crack down on offshore trusts that allow “non-domiciled” residents to escape tax on their UK investments has emerged during meetings between senior officials and professional institutes. The planned measures will mean about 15,000 of the wealthiest non-doms will face much larger tax bills than the £30,000 fee unveiled last month for those wishing to keep offshore income and gains out of the tax net. The Chartered Institute of Taxation has warned the Treasury that the measures would have “a profound impact on the housing and art markets in London as well as its pre-eminence as a financial centre”. The Treasury’s apparent determination to close loopholes on CGT follows the row this year over the minimal tax bills paid by non-doms, particularly in private equity. Fierce criticism of the unfairness of the existing regime helped overcome the government’s reluctance to risk alienating non-doms, philanthropists and political donors. But wealth advisers fear the Treasury has underestimated the impact of the measures. The Society of Trust and Estate Practitioners, which represents advisers, is calling for “a considered economic assessment before radical changes are introduced and London . . . is damaged”. Tax advisers want to put pressure on the Treasury, which has yet to publish details. Article from FT.com No one has commented on this article. |
Finance & Accountancy 
