Future Capital Partners - progressive & unique
04 July 2007

Darling halts non-domicile taxation clampdown

4_july_2007.jpgIn his first press interview (Financial Times 3 July 2007), new chancellor Alistair Darling ruled out an immediate clampdown on tax privileges used by non-UK domiciled individuals and by the private equity industry, fearing that any sudden changes might have undesirable effects on the "absolutely critical" role the City plays in the economy.

Darling said he would be "vigilant" on "abuses" but he intends no crackdown on private equity nor the non-domicile system that allows wealthy foreign billionaires to live in the UK and avoid huge amounts of tax: "I am very aware... that there are a number of people who are doing business here, and are contributing to business here, and could go somewhere else."