Britain must not drive away the global rich
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Editorial: Keen to be non-ideological in its pursuit of economic growth, the government has wisely adjusted its proposed changes to the taxation of non-doms. The news out of Davos, where the chancellor has been on a winter charm offensive with the global elite, would appear to be another concession to those who, it could reasonably be argued, need it least.
The changes Rachel Reeves is proposing to the bill on the taxation of non-doms – those considered not domiciled in the UK – may be more of a tweak than a U-turn. But the message that any softening of her proposals in this particular area risks sending to voters and taxpayers at home is that, if you have the money, or the clout, then this government will heed your concerns. And if not – pensioners, farmers and others – it won’t.
But this move should perhaps be interpreted differently – and more positively. We have asked this government to be non-ideological in its pursuit of economic growth. Taxing the super-rich for the sake of taxing the super-rich is not the way to go, however popular such a policy might be in some quarters.
The objective should be compensation, not confiscation. That the government intends to adjust its changes to the taxation of non-doms emerged from an interview Ms Reeves gave to The Wall Street Journal, where she said that the government would propose amendments to the Finance Bill, in response to concerns that had been expressed.
One change would extend the proposed three-year time limit for bringing money into the UK essentially tax-free. The other would clarify that existing double-taxation agreements applied also to inheritance tax, so that non-doms need not worry about demands to pay tax on the same fortune in two jurisdictions.
