Commenting on Labour’s proposed reforms to the non-domiciled tax status, Simon Walker, Director General of the Institute of Directors, said:
“Attacking non-doms is a shrewd political move, but the economics of the proposed reforms are unconvincing. It’s very unclear what additional revenue would be raised, but the UK’s international reputation would be put at risk. This country has benefited enormously from attracting some of the most successful businesses and entrepreneurs in the world, with the previous Labour Government recognising the benefits of an internationally competitive tax system.
“While there may be little public sympathy for those who stand to be affected by reforms to non-dom status, the truth is that these things matter. There is a serious risk that large numbers of the international financial community, who have headquartered themselves in London at least in part because of our tax regime, will now exit the country. Politicians at the height of an election campaign may consider this a price worth paying, but we do not.”