New ASI briefing paper "Non-Sense: Examining the arguments and rhetoric around non-dom tax provisions" features in The Daily Telegraph:
A promise by Labour leader Ed Miliband to scrap non-dom rules “risks cutting off the country’s nose to spite its face”, a think tank report has warned.
In a new paper entitled “Non-Sense”, the Adam Smith Institute laid out the case for preserving the non-dom system, under which some individuals living in the UK are exempt from paying tax on foreign income that is not brought into the country.
Ben Southwood, head of research at the ASI, said: "Cracking down on non-doms may sound nice but proposals that sound nice aren’t always good policy."
"Mr Miliband’s scheme risks making both the UK and the Treasury poorer and less fair."
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.