‘The draft clauses published today are likely to be viewed as more of a missed opportunity for individual taxpayers rather than a further step closer to a simpler, more stable and certain tax regime’, says Christopher Groves, partner at Withers.
Christopher Groves, a partner at Withers LLP, said:
‘The draft clauses published today are likely to be viewed as more of a missed opportunity for individual taxpayers rather than a further step closer to a simpler, more stable and certain tax regime.
“The Government has delayed the introduction of the proposed statutory residence test for individuals until 2013. This would have removed the considerable uncertainty that currently exists as to when an individual becomes resident in the UK. While the Government has indicated that it remains committed to the new test, this delay is a considerable disappointment for individuals seeking clarity on their tax position and is a setback for the UK as it seeks to improve its international competitiveness.
“The introduction of new rules for the taxation of non-domiciliaries in the UK has been retained and will take effect from 6 April 2012. These include the increase of the remittance basis charge from £30,000 to £50,000 for non-doms resident in the UK for more than 12 years from 6 April 2012. The proposed new rules designed to encourage investment into the UK by non-doms will also take effect next year and have been modified somewhat following this summer’s consultation. However, many of the restrictions contained in the original proposals have been retained – in particular those that prevent investment into limited companies and partnerships – and this will weaken the impact of these measures in attracting new investment to the UK.’