New ASI briefing paper “Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions” features in City AM:
Ed Miliband's reform to the non-dom system ignores all the evidence, risks costing the country money and could make the UK less attractive to entrepreneurs.
That's the verdict of a new briefing paper from the Adam Smith Institute that aims to separate fact from fiction when it comes to the political rhetoric surrounding non-doms.
In a speech at the University of Warwick on Wednesday, the Labour leader claimed there were around 116,000 non-doms in the UK. According to the ASI, that isn't the whole story.
The 116,000 figure accounts for those people who filed a self-assessment form and ticked the non-dom box. However, the ASI reckons there are around one million students and workers in the UK who don't have indefinite leave to remain in the country and are therefore, by definition, non-domiciled.
The briefing paper “Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions“debunks the oft-quoted claims being made by politicians about non-doms and highlights the potential financial risks associated with Labour’s proposed changes to the rules.
The paper explains how Miliband’s proposed changes to the tax rules could cut government revenue, drive away investors and risk hurting middle-income migrant workers registered as non-domiciled in the UK.