UK Treasury Admits There Is No Timetable For Domicile Tax Reform

by Robert Lee, Tax-News.com, London

24 April 2002

The UK Treasury has revealed that there is, as yet, no timetable for a review of the country's 200-year old rules on tax domicile and residency.

Although - in the wake of the Chancellor's decision to examine the tax treatment of wealthy UK residents domiciled elsewhere for tax purposes - a mass exodus of HNWI was predicted, it seems that non-resident millionaires such as steel magnate Lakshmi Mittal, may be able to unpack their suitcases - for the moment at least.

Giving evidence to the Commons Treasury select committee on the Chancellor's April 17 budget, Head of Tax Policy, Alex Gibbs admitted: 'We haven't set a formal timetable or framework for the review yet.'

Mr Gibbs revealed that the review and modernisation process would be conducted by the Inland Revenue in conjunction with the Treasury department, but declined to comment further, other than to reiterate the government's commitment to bringing the tax treatment of wealthy long-term foreign residents in line with modern working practices.

Recommended