Monday, February 11, 2008

Is the non-dom tax issue rebounding on the Tories ?

Radio 4's PM reported tonight that there are complaints from non-domicilies that the proposed £30,000 flat tax on them will force many to leave the country. The traditional Tory line is that we shouldn't force such "wealth creators" out of the UK. Indeed, a senior Tory backbencher, Michael Fallon, has said as much on this topic.

However, given that the Tories proposed a £25,000 tax they haven't got a leg to stand on here.

The FT reports:

In stark contrast to the furore over capital gains tax, in which the Tories vociferously backed business protests, the party has been conspicuous by its absence from the dispute over non-doms.

The government’s proposal for a £30,000 levy came within weeks of a Conservative plan for a £25,000 fee. Industry groups fear Mr Cameron is holding back from criticising the Treasury move for fear any attack would be seen as an implicit admission of flaws in the Tory proposal.

...A senior Tory backbencher has broken ranks, with an implicit criticism of his party’s proposals. Michael Fallon, a Thatcherite member of the Treasury select committee, said: “Chasing non-doms out of London is a huge mistake ... Why do we want to lose all that business to Luxembourg or Dublin or Geneva?”

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