Why do we need the non-doms here?

[Karimbo]

So Reform are pushing the britannia card. you pay £250K and you have the license to carry on as you were, living inthis country as if you dont actually live here and dont pay tax here.

Watched a few videos online saying how this is a reasonable allowance because they own assets abroad and it's to protect them against double taxation, because they might be german citizens and own property in germany and if they are not allowed to be non doms any more then the british government might tax them for their german properties.

I dont know much about tax laws but that sounds like it's propogandising a lot.

Isn't it the case that non doms are registered offshore and they arrange their ownership of assets through tax havens like dubai and west indies islands with zero coporation tax for all their investments. They're not resident anywhere, their assets aren't registered anywhere that pays any tax.

If theyre not paying tax to any real government of the world. Does it matter if we have them in the UK or not? theyre scrounging off the British society, sure they might pay some consumption tax, but their incomes arent taxed and I'm sure they own properties in the UK registered through offshore shell companies and dont pay UK corporation taxes on the return they receive on them.

So why do we need the non doms here?

These people are not paying back intothe UK and inflating UK property prices for ordinary people because they hoard all the properties, reduce supply which shoots house prices up for everyone. The more they buy the more valuable their properties get in essence. And the more expensive it becomes for ordinary working people.

Nobody seems to address this point. If non-doms don't pay tax, what tax contributions are we losing if they leave?

The double speak of "if they leave, the british state will lose out on taxes" and "If we starting taxing them by removing non dom status, then they will leave" is so hypocritical and people say both phrases with a straight face.

 

[FreddyG]

I am a non-dom. But not for the UK. I am a German non-dom. As such, I have to pay 30% tax to the German Finanzamt - their HMRC.

The double speak of "if they leave, the british state will lose out on taxes" and "If we starting taxing them by removing non dom status, then they will leave" is so hypocritical and people say both phrases with a straight face.

That's it in a nutshell!

 

[UKSBD]

Nobody seems to address this point. If non-doms don't pay tax, what tax contributions are we losing if they leave?

They may not be paying tax, but they may be employing dozens of people who are paying tax.

 

[fisicx]

They may not be paying tax, but they may be employing dozens of people who are paying tax.

And corporation tax.

But I agree with the sentiment that the likes of Phillip Green add no real value to the UK. Replace them with a CEO living in the UK.

 

[FreddyG]

I am a non-dom.

I am not a UK non-dom.

I am a UK dom.

I pay taxes on my foreign income.

I pay 30% tax on that income to the country where that income comes from.

I can always F-off and return to where I came from.

Then I would pay far less tax.

But some people do not want to pay ANY tax.

 

[FreddyG]

So Reform are pushing the britannia card. you pay £250K and you have the license to carry on as you were, living inthis country as if you dont actually live here and dont pay tax here.

Watched a few videos online saying how this is a reasonable allowance because they own assets abroad and it's to protect them against double taxation, because they might be german citizens and own property in germany and if they are not allowed to be non doms any more then the british government might tax them for their german properties.

That is total rubbish and if the Reform Party is making such claims, they are talking out of their collective A-holes.

I earn money in Germany, including rental incomes and I pay 30% tax to the Finanzamt. There is no need for anyone to "register" as a non-dom, and the whole German argument is a rather uninformed red herring.

I dont know much about tax laws but that sounds like it's propogandising a lot.

It sounds like the babbling of the ignorant and uninformed. All we do, is to show to HMRC that we have already paid 30% on our German revenues.

End of story.

 

[MikeJ]

Not every country has double taxation agreements with the UK.

Italy has a €200,000 fee for non-doms, so Reform are proposing something that's already been established as a system in an EU country.

Europe: Magnetic Milan – The allure of Italy for the UK's non-doms

With long-anticipated changes to the UK's preferential tax regime for UK tax-resident, non-UK-domiciled ("RND") individuals, colloquially referred to as "non-doms", finally con...

insightplus.bakermckenzie.com

 

[FreddyG]

Not every country has double taxation agreements with the UK.

And you do not need one either.

Italy has a €200,000 fee for non-doms, so Reform are proposing something that's already been established as a system in an EU country.

It's a gimmick! The UK and Germany do have an old DTA since 1964, but under UK law today, no DTA is needed. We just show that we are paying tax somewhere - in our case, Germany.

The economic effects of people (non-doms) who do not pay taxes anywhere are almost only negative, such as buying up assets (e.g. properties) and making those assets unavailable to locals. There are many other negative effects caused by people who pay tax nowhere, as it creates greater social injustice. An us and them society! An overclass of haves and an underclass of taxpaying have-nots.

It also aids money laundering and benifits crime. The UK is already the world capital of criminal money-laundering and this is causing the UK all kinds of economic problems.

 

[Porky]

Let's spin this around

If i invest £500k in say Greece under their golden visa scheme, a Greek business i set up and employ local.people, i would be paying tax ONLY on what my busines delivers in Greece to the Greek authority.

Greece are not taxing me on what I earn in the UK. ONLY on what I deliver in Greece.

So in principle, I am bringing investment to their country £500k that they didn't have, im helping create jobs in their country that did not previously exist and if the business is successful they are getting taxes from the said new venture.

But it doesnt stop there does it, im helping the entire work chain, other suppliers in Greece, locals traveling to work, its all boosting the Greek economy.

So multiply that by a few thousand other non doms bringing 500k and business in Greece and the Greek economy is getting a very nice boost thanks very much.

Meanwhile in the UK, not only does this stupid government with its ideology socialist text book ideas think double taxation is a good idea, tax people on any income earned here and on income earned elsewhere they even want to look at exit taxes to try and trap people here - another reason to not make investing in the UK attractive.

So I say, the reform golden visa idea is actually a bloody brilliant way to a) bring investment to the uk we desperately need and b) create jobs and boost our economy.

I am all for anything frankly that can help business and create growth in the UK - I would like to see more non doms investing here franky and less bloody spongers sucking the life out of the uk through benefits and expecting someone else to keep paying for it.

Double taxation to me is wrong at every level and makes the UK totally unattractive to invest in, add to that the waves of more red tape and legislation being introduced and the UK is fast becoming a really unatractive place to invest - i fail to see why Starmer and co can't grasp these basic principles.

 

[Newchodge]

They may not be paying tax, but they may be employing dozens of people who are paying tax.

And they may not be employing anyone except a cleaner.

 

[Newchodge]

And corporation tax.

But I agree with the sentiment that the likes of Phillip Green add no real value to the UK. Replace them with a CEO living in the UK.

Only UK companies pay corporation tax. A limited company cannot be a non-dom, by definition.

 

[Karimbo]

Only UK companies pay corporation tax. A limited company cannot be a non-dom, by definition.

There are ways for a huge company to set up their parent company in a tax haven and get the UK ltd to pay licensing fees to offshore international holding company to reduce profits down to nothing.

Hence the claim "we pay all the tax we legally owe".

HMRC doesnt care because the VAT is far more lucrative than corpoation tax in most cases. HMRC would much rather have loads of international companies who can generate turnover than small indie coffee shops for instance who are owner operated and dont have as high turnover as an international chain.

Both will probably pay the same corp tax (next to nothing). But HMRC gets more VAT out of the international chain than the indie.

 

[FreddyG]

If you are an international and selling here, the VAT is being paid by consumers in the UK. You, on the other hand, are international and with your holding in the Cayman Islands. That means that you are solely extractive. You are taking profits here and syphoning them off to a tax-free jurisdiction, calling them IP fees. You are extracting wealth from the UK and sending that wealth out of the country.

Because you are not producing here, your employment profile is low. It may even be close to zero. A few people in a dispatch warehouse and that's it!