Tax specialist KPMG has warned if the Revenue adopts an unduly aggressive or suspicious approach to tax returns due from non-doms at the end of this month it could cause many to leave the UK.
The tax returns, which are due by 31 January, have been deemed the ‘the most important of UK non-doms’ lives’ by KPMG which said the returns could have a significant impact on the future of the UK as a financial centre.
Large numbers of non-doms are expected to come forward and register with the Revenue for the first time under the new tax rules which have reduced non-dom tax advantages, including the ability of those with no UK income to stay entirely outside the UK tax system.
The rules mean UK resident non-dom taxpayers will have to decide whether to claim under the remittance basis and pay a £30,000 one-off fee to keep their offshore profits outside the UK tax net – or to pay UK tax on their worldwide income or gains.
David Kilshaw, head of private client advisory at KPMG said the new rules are complex and HMRC should be sympathetic.
“These are complex new rules, which tax payers and HMRC alike are struggling with,” said Kilshaw.
“HMRC can be expected to enquire into a large number of returns to make sure they are correct, and rightly so.
“But it is also to be hoped their approach will be sympathetic and understanding. If HMRC were to be unduly aggressive or suspicious in their dealing with the returns filed, this could be the straw which causes many non-doms to leave the UK.”
