Quarter of non-doms prepared to leave UK

Results of a new survey from KPMG reveal that one in four non-domiciles could leave the UK after business competitiveness has been damaged due to tax changes. The Big Four firm has suggested changes that government could make to prevent non-domiciles from leaving the UK. The survey suggested that £90m in net assets could be lost if 24% of respondents who said they would quit, actually do so in the next two years. Carolyn Steppler, associate partner at KPMG's private client advisory team, said: 'We know that the non-doms were unhappy about the tax changes but we had not appreciated the extent to which they seemed prepared to vote with their feet on this issue.' The report showed that many non-doms were attracted to the UK because of the number of business and employment prospects, but since the economic downturn, this has made them more likely to leave. Although changes were made to non-domicile taxation in the 2007 pre-budget report, the government has had to make fiscal and tax adjustments for the current economic climate which do not benefit non-doms. Steppler added: 'Our concern is that many non-doms may find that the UK no longer offers the opportunities it once did. If we want non-doms to come to the UK for employment or business once the economic position improves, the UK needs to be considered an attractive location. This includes an attractive fiscal regime.'
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