Premier League footballers ‘will depart the UK’ if the non-dom tax standing is scrapped, evaluation warns TERMAN WEBSITE

Scrapping the non-dom tax regime may value the Treasury £5billion in income, scale back GDP and immediate dozens of prime Premier League footballers to go away the nation, warns an evaluation.

The examine by an unbiased group of worldwide economists says such a transfer by Chancellor Jeremy Hunt within the Funds could be ‘extremely dangerous’.

Non-domiciled standing permits overseas nationals who stay in Britain however are formally domiciled overseas to keep away from paying UK taxes on their abroad earnings or capital features.

They nonetheless need to pay taxes on their earnings within the UK. Prime Minister Rishi Sunak’s spouse Akshata Murty has beforehand loved non-dom standing.

The report from the Progress Fee comes as Mr Hunt is considered contemplating scrapping the regime as he appears to be like for methods to pay for tax cuts elsewhere.

Scrapping the non-dom tax regime may value the Treasury £5billion in income, scale back GDP and immediate dozens of prime Premier League footballers to go away the nation, warns an evaluation. Pictured: Present Premier League winners Manchester Metropolis

The examine by an unbiased group of worldwide economists says such a transfer by Chancellor Jeremy Hunt within the Funds could be ‘extremely dangerous’. Pictured: Hunt at his earlier finances on March 15 2023 holding his ministerial field exterior 11 Downing Avenue

Prime Minister Rishi Sunak’s spouse Akshata Murty has beforehand loved non-dom standing. Pictured: The pair at Conservative Celebration convention in October

Such a transfer would additionally serve the double function of taking one in every of Labour’s essential insurance policies, with the cash earmarked for most of the Opposition’s spending plans.

Labour has beforehand backed the thought, saying it will increase as much as £2billion.

The report calculates that the estimated 68,000 non-doms in Britain at the moment pay £12.4billion a 12 months in UK tax and contribute £46billion to gross home product (GDP), a measure of the scale of the financial system.

A big portion of this group would go away if the coverage was scrapped, argues the examine.

That might end in a fall within the earnings taxes they pay, with an additional lower attributable to the drop within the measurement of the financial system.

Total, it estimates a lack of £5billion in tax revenues and 0.5 per cent in GDP a 12 months.

Labour has beforehand backed the thought of scrapping the non-dom tax regime, saying it will increase as much as £2billion

The worst affected could be ‘footloose’ industries the place staff can transfer simply between international locations, comparable to banking, oil, automotive manufacturing and soccer

The worst affected could be ‘footloose’ industries. These make use of individuals who can transfer simply between international locations and embody banking, oil, automotive manufacturing and soccer, the analysis mentioned. A few fifth of bankers benefit from the non-dom regime and an estimated 371 footballers have that standing.

In a single evaluation, as many as 205 of these gamers may depart if it had been to be scrapped.

However given the restricted alternatives to earn excessive Premier League degree wages in different international locations, that is more likely to be restricted to between 50 and 80, together with about 20 of the sport’s prime stars. Douglas McWilliams, deputy chairman of the Centre for Economics and Enterprise Analysis, who led the examine, mentioned: ‘Among the finest guidelines of taxation is for tax authorities to not be too grasping.

‘Given the quantity of income that the UK tax authorities at the moment earn from non-doms, it will appear extremely dangerous to abolish non-dom standing.’