Non-dom Status Abolition 2024-02-06
2024-02-06
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from a debate on the merits of abolishing non-domiciled tax status, which is under scrutiny for its impact on UK's fiscal policy and social equity.
Whether he has made a recent assessment of the potential merits of abolishing non-domiciled tax status.
The Government want the UK to have a fair but internationally competitive tax system, designed to bring in talented individuals and investment that contributes to the growth of the economy. Non-doms play an important role in funding our public services through their tax contributions. They pay tax on their UK source income and gains in the same way as everyone else.
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Assessment & feedback
The specific question about a recent assessment was not directly addressed with concrete facts or figures.
Fair But Internationally Competitive Tax System
Play An Important Role
Response accuracy
Q2
Partial Answer
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Context
During a cost of living crisis, the question addresses the disparity between struggling pensioners facing increased taxes and non-domiciles with protected tax statuses. The question highlights potential revenue gains from scrapping non-dom status.
The Minister talks of fairness, but the fact is that during the cost of living crisis nearly a million more struggling pensioners will start paying income tax, because of the freeze in personal allowance rates, while the Government protect some of the richest members of society through non-domicile status. Scrapping that status could bring the Treasury an extra £3 billion a year. Why do the Government not do the right thing and bring in that extra money to protect pensioners and the lowest paid?
Non-doms contributed about £8.5 billion in taxes in 2022, and have contributed to investment to the tune of £7 billion since 2012. The hon. Gentleman will be well aware that scrapping their status would not be risk-free in a world in which people can be quite mobile, and could damage the UK's competitiveness. As for the need for other support, that is exactly why we have been reducing national insurance rates, for example.
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Assessment & feedback
The specific question about scrapping non-dom status was not directly addressed with a commitment or timeline.
Not Risk-Free
Damage The Uk'S Competitiveness
Response accuracy