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THE chief executive of Harvey Nichols has launched a stinging attack on Treasury plans for a crackdown on non-doms.
Joseph Wan said proposals to levy an annual £30,000 charge on non-domiciled residents was “very, very bad for London and for the long-term UK economy”.
The luxury-goods chief told The Sunday Times that if the crackdown on wealthy immigrants went much further he would flee the UK when he retires at 60. “Depending on how much further things go – reluctantly I would leave on retirement,” he said.
Wan, 53, said several of his friends were already making preparations to leave.
Hong Kong-born Wan admits he is a non-dom himself, but says he pays more than £100,000 a year in British taxes.
Last week Alistair Darling, the chancellor, was forced into a partial retreat on the non-dom tax after a backlash from business, banks and pressure groups in the City which said the measures would damage London’s status as a financial centre.
Non-doms had feared they would be forced to disclose information about income and gains falling outside the UK tax net – but last week the Revenue was forced to issue a clarifying statement saying this was not the case.
“Obviously that was a move in the right direction, but it is too little, too late – the damage is already done,” Wan said.
He said that wealthy overseas people created jobs and spent money in Britain, an important stimulant to the economy.
Wan’s comments came as a new survey by Grant Thornton, the accountant, found 42% of South Asian high-net-worth individuals considered as non-doms were preparing to leave the UK.
A recent survey by Stonehage, the advisers, estimated that nondoms spent at least £16.6 billion a year in Britain – almost equivalent to Luxembourg’s GDP.
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It's time for these tax avoiders to leave.
judy, Liverpool, England
Not all Non-doms are rich enough to pay £30,000 per annum, whilst there are those for whom this amount is peanuts, nobody who lives in Britain should be exempt totally from tax, I would probably agree to a lower tax-band for the super-rich. Non-doms may contirbute to society via VAT, but their spending power is greatly enhanced by their manipulation of tax-loopholes, this increase in disposable wealth has been one of the main reasons for our ridiculous property prices over the past nine years, their prescence may help to create wealth in the UK, but is it worth it when most ordinary people are being taxed excessively and cannot afford to buy their own home.
Les Corrin, Southport, England
They pay a lot in tax.....but where does it go???
c sharp, london, uk
If Non-Doms are made to declare their incomes and gains within the UK then Parliament should do the same. Also slapping a £30,000.00 sum on Non-Doms is going to cause a long-term challenge to the UK economy.
Marie-Claire Oliver, Bath, United Kingdom
Briton has always been able to claim it is open to new ideas, and those that promote them where ever they hail from.
Let's not kill the golden goose for a few feathers (pounds).
Lets wait and enjoy the benefits.
john laybourne, luton, uk
Add to last comment.
They also pay vat and the cost of being here. They spend more than they cost. They bring money into the country.
john laybourne, luton, uk
Non doms already pay considerably more UK tax than domiciled Brits - that is the price they ALREADY pay for the privilege of living in the UK. Maybe domiciled residents should pay the extra 30k to keep up with the non-doms and be part of Club UK. It is classical socialist dogma based on the economics of envy, to charge non-doms even more, even if it means a reduction in tax income overall for the government as many queue to leave. And now the Chancellor wants banking bonuses to be based on how much one's neighbour might feel reasonable and not how much profit one makes for one's employer. Time for even domiciled residents to leave too? Socialism is back with a vengeance! Wealth creators have again to abandon the UK, both doms and non-doms.
Ab, London,
it is not people like Joseph Wan that we should all be concerned about.The media has completely missed the point that there are hundreds of thousands of middle level non-doms, such as doctors, accountants, I.T. professionals etc who are badly affected.These people cannot afford to pay £30K just because they may have a little bit of income in India for example.The NHS should be gearing up for an unprecedented crisis if thousands of non-dom doctors and surgeons decide to leave.This will happen in the next 24 months unless this badly drafted proposals are given serious thought.
Rajeev Shah, Northwood,
i am getting really tired of the whinging NonDoms. They choose to live in Britain and squirm to avoid paying their way. If they don't want to pay British taxes then the answer is obvious - go and live somewhere else.
Pierre, London , England
Looks as if theTreasury could do with this tax to give to the MOD. Far from creating wealth, the non dom City types seem very capable of destroying it.
But then the rich are very able to present themselves in a good light and always prefer that someone else pays for their pleasures.
Eddie Reader, birmingham, england
The UK needs to be the place for business and opportunity,and to attract to it's self from the Globe all business people and all business activities,to better the life of all in the UK. Sadly,under the repressive tax regimes of Gordon Brown & Co anyone involved in any business activity,(even selling pins on ebay for a penny),is branded charlatan,or labelled as a person not contributing to the rest of UK society an "appropriate" amount deemed by him.Amounts then wasted by the billions in the ever increasing machine of "public spending".
Dennis J, London, UK
It would only be fair to point out that Mr.Wan has residency rights in about the only country in the world where he can also retire, live tax free and feel culturally at home - Hong Kong.
Having worked there prior to Mr Poon's acquisition of Harvey Nicks, his is hardly a good example of the impact of "non dom tax".
He is by training a salaried accountant I believe hardly a "luxury goods chief".
i am also someone who could benefit form the UK non dom tax setup, but I think it is only fair that some levy is introduced. If people do not think living in Britain is worth 30,000 quid a year then the UK is best off with out them.
stephen brown, Hong Kong , Hong Kong