Tax Rebates & Refunds

Number of super-rich taking advantage of tax break scheme drops

March 18, 2013
Posted in Income Tax, Other Tax — Written by Jennifer

According to new data, the number of British people who are taking advantage of a tax break available to the ‘super rich’ has dropped in the last year.

In the UK, it is possible to live in the country but be classed as ‘non-domiciled’ in the UK for tax purposes. This status can be attained after paying a fee of between £30,000 and £50,000, depending on how long the person has been living in Britain. Once a person is classed as non-domiciled, he or she is able to exclude much of their income from taxation.

Official figures from HMRC, the department responsible for income tax and tax rebates, have shown that in the tax year ending April 2011, the number of people taking advantage of this tax break fell to just 116,000. This is considerably less than the 140,000 reported in the 2007 – 2008 tax year.

Experts at Pinsent Masons have said that the figures show that the government’s practice of charging a fee for the right to make use of the tax break has made the UK less attractive to Europe’s super-rich, which is why less people are taking advantage of it. However, HMRC says that the figures are also affected by the economic downturn in general.

No Comments (Leave comment »)

No comments yet.

Comment RSS | TrackBack URL

Leave a comment