"The main problem with the current regime is that it encourages people to leave their wealth offshore and penalises them for bringing it into the UK.
"A lump-sum tax regime where there is a meaningful tax charge (that is ideally based on the individual’s wealth and that satisfies their UK tax liabilities in relation to those assets) will enable people to bring money into the UK which will encourage inward investment in line with the Government’s stated objectives,” he added.
Toby Band, financial planning director, at First Sentinel Wealth, did not think a change in taxes would result in a "mass exodus" of non-doms, who already pay high taxes, have family and friends here, and enjoy life in the UK.
"We rarely hear tax as a driver of why our clients moved here. In fact, many of our non-dom clients moved to the UK for salaried employment, where they are paying substantial taxes to HMRC via payroll.
"That said, for our clients who are business owners, entrepreneurs, or families with non-dependent children who can be more mobile with their operations, we are having conversations about their future outside of the UK. The loss of this sub-set of non-doms will lead to lower tax receipts and a brain drain," he added.
alina.khan@ft.com
