Peer Resigns To Preserve UK Non-Dom Status

By ExpatBriefing.com Editorial 09 July, 2010

World famous architect Norman Foster has resigned from the House of Lords rather than give up his non-domicile tax status and pay full UK tax. The architect, who lives in Switzerland where he has substantial assets including an 18th century chateau, made the decision before the expiry of a deadline on Wednesday night.

Lord Foster is the fifth peer to give up his seat in the House of Lords because of the non-dom tax issue, though conversely Tory peer and Deputy Chairman of the party Lord Ashcroft announced he was giving up his non-dom status to pay full UK tax and will remain in the House of Lords.

It transpires that Lord Foster and other peers who decided to leave the House of Lords will be allowed to retain their peerages, though they will be precluded from taking their seat in the upper chamber again.

Lord Foster designed the new Wembley Stadium, London’s ‘Gherkin’ tower and the infamous 'wobbly' Millennium Bridge across the Thames.

In the UK, domicile is a general law concept and it refers to the country which is a taxpayer's ‘permanent home’. According to HMRC guidance, domicile status is usually acquired from one's father, although this can be changed later in life. Those claiming non-dom status do not pay UK tax on foreign income as long as it is not remitted to the UK.

Tags: Individuals | Expatriates | Compliance | Tax | Tax Compliance | Tax Avoidance | Law | United Kingdom | Offshore | Switzerland | Individual Income Tax |

 





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