Thursday, February 28, 2008

Drive away the huddled masses yearning ... work and invest--in the U.S. it's called Obamanomics--in your country:
Britain's biggest business lobby has launched a stinging attack on the Government's controversial plans to tax non-domiciles, claiming it will hurt the UK economy and raise little in the way of revenue.

Richard Lambert, the director-general of the CBI, said: "At a time of growing economic uncertainty it is vital we do all we can to keep wealth generators and their businesses in the country, not make them feel unwelcome and drive them out."

There are about 120,000 non-domiciled in Britain. Under plans due to take effect in April, anyone who has claimed non-dom status for seven of the last ten years will have to pay an annual fee of £30,000 to the Exchequer.

....The CBI's salvo came as the head of Britain's private equity industry said that the non-dom legislation could trigger a flight of capital from London's key financial services industry.

....Simon Walker, head of the British Venture Capital and Private Equity Association, added to the weight of criticism over the policy and cited a newspaper advertisement from a property company in Zurich urging non-doms to go and live there.

"That says more than I can," he said, expressing fears of an exodus away from London and the creation of a barrier to foreigners wanting to do business in the capital.

....A number of foreign nationals living in the UK and working in the City are already said to be planning to leave. That could hit the private equity business in the UK, which currently accounts for almost 60pc of all European deals.

....Seminars are being organised by foreign lawyers in London to act as shop windows to persuade tax experts to advise their clients to move away from the UK.

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