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Has Labour's promise to end non-dom tax status affected your vote? Has Labour's promise to end non-dom tax status affected your vote?
(about 1 hour later)
Labour’s promise to abolish the non-dom tax status, should they win the election, is possibly the most exciting announcement of the campaign so far.Labour’s promise to abolish the non-dom tax status, should they win the election, is possibly the most exciting announcement of the campaign so far.
The pledge is aimed directly at those “hard-working families” Miliband refers to in every single election speech he’s ever made.The pledge is aimed directly at those “hard-working families” Miliband refers to in every single election speech he’s ever made.
It caught the Tories off guard, causing a flurry of rebuttals – including a craftily edited and misleading video of Ed Balls – which Miliband has labelled “totally contradictory’.It caught the Tories off guard, causing a flurry of rebuttals – including a craftily edited and misleading video of Ed Balls – which Miliband has labelled “totally contradictory’.
But how much has Labour’s promise affected your vote? Is this a move back to the Labour you once loved? Or is it merely a passing nod to a fairer UK, in a slew of austerity-rich policies? Tell us in the comments below.But how much has Labour’s promise affected your vote? Is this a move back to the Labour you once loved? Or is it merely a passing nod to a fairer UK, in a slew of austerity-rich policies? Tell us in the comments below.
Here’s what you need to know about it, and reactions so far.Here’s what you need to know about it, and reactions so far.
Of this I am certain; by the end of the day, this will have cost the Tories votes. And they will be votes they can ill afford to lose.
What is the non-domicile tax status?What is the non-domicile tax status?
It’s when super-wealthy British residents legally avoid paying UK tax on foreign income as long as they do not transfer it to the UK. If they do they can choose to pay a charge instead of a full assessment.It’s when super-wealthy British residents legally avoid paying UK tax on foreign income as long as they do not transfer it to the UK. If they do they can choose to pay a charge instead of a full assessment.
By contrast, UK domiciles have to pay tax on all of their income and gains, wherever in the world they are made – Britain or overseas.By contrast, UK domiciles have to pay tax on all of their income and gains, wherever in the world they are made – Britain or overseas.
Bonus fact: James Ball, Guardian data editor, points out that “eligibility relies on showing that either the non-dom, their father or grandfather was born overseas. In a sexist twist, their mother or grandmother being born overseas does not generally grant eligibility.”Bonus fact: James Ball, Guardian data editor, points out that “eligibility relies on showing that either the non-dom, their father or grandfather was born overseas. In a sexist twist, their mother or grandmother being born overseas does not generally grant eligibility.”
Fantastic news - goodbye tax haven UK and hello tax rises for those with the broadest shoulders to pay what they've been getting away with for years. Excellent news.Fantastic news - goodbye tax haven UK and hello tax rises for those with the broadest shoulders to pay what they've been getting away with for years. Excellent news.
What is Ed Miliband’s position?What is Ed Miliband’s position?
Miliband says non-dom status is a symbol of tax avoidance and a “an increasingly arcane 200-year-old loophole”.Miliband says non-dom status is a symbol of tax avoidance and a “an increasingly arcane 200-year-old loophole”.
“There are people who live here in Britain like you and me, work here in Britain like you and me, are permanently settled here in Britain like you and me, but aren’t required to pay taxes like you and me because they take advantage of what has become an increasingly arcane 200-year-old loophole. There are now 116,000 non-doms, costing hundreds of millions of pounds to our country. It can no longer be justified, and it makes Britain an offshore tax haven for a few.”“There are people who live here in Britain like you and me, work here in Britain like you and me, are permanently settled here in Britain like you and me, but aren’t required to pay taxes like you and me because they take advantage of what has become an increasingly arcane 200-year-old loophole. There are now 116,000 non-doms, costing hundreds of millions of pounds to our country. It can no longer be justified, and it makes Britain an offshore tax haven for a few.”
Labour said abolishing the tax status would raise hundreds of millions of pounds.Labour said abolishing the tax status would raise hundreds of millions of pounds.
How have the Tories responded?How have the Tories responded?
Conservatives know that being labelled the party of the rich is damaging for their election campaign.Conservatives know that being labelled the party of the rich is damaging for their election campaign.
Osborne has responded by accusing Labour of not actually abolishing the non-dom tax on the grounds that non-doms who stay in the UK for no more than two to three years will still be eligible.Osborne has responded by accusing Labour of not actually abolishing the non-dom tax on the grounds that non-doms who stay in the UK for no more than two to three years will still be eligible.
Conservatives say the non-dom policy has raised more money than other governments. Critics claim that it will lead to an exodus of the super-rich and cost the UK hundreds of millions of pounds in lost tax revenues and lost investment.Conservatives say the non-dom policy has raised more money than other governments. Critics claim that it will lead to an exodus of the super-rich and cost the UK hundreds of millions of pounds in lost tax revenues and lost investment.
wow, miliband is utterly clueless - he wants to drive anyone successful away from the UK. He would turn us into an economic basket case.wow, miliband is utterly clueless - he wants to drive anyone successful away from the UK. He would turn us into an economic basket case.
Miliband is a wolf in sheeps clothing, dangerous for the future of the UK with his discredited freshman brand of socialist and economically insane policies.Miliband is a wolf in sheeps clothing, dangerous for the future of the UK with his discredited freshman brand of socialist and economically insane policies.
We must keep him out of no.10 at all costs.We must keep him out of no.10 at all costs.
And what about the Ed Balls video?And what about the Ed Balls video?
Conservatives produced a video of Ed Balls, shadow chancellor, from early this year in which he said it would be wrong to abolish the non-dom rule on the grounds that it would cost the UK money in lost tax revenues.Conservatives produced a video of Ed Balls, shadow chancellor, from early this year in which he said it would be wrong to abolish the non-dom rule on the grounds that it would cost the UK money in lost tax revenues.
He told BBC Radio Leeds on 9 January: “I think if you abolish the whole status then probably it ends up costing Britain money because there will be some people who will then leave the country.”He told BBC Radio Leeds on 9 January: “I think if you abolish the whole status then probably it ends up costing Britain money because there will be some people who will then leave the country.”
But Labour accused the Tories of deliberately misleading voters by editing out a crucial final sentence: “But I think we can be tougher and we should be and we will.”But Labour accused the Tories of deliberately misleading voters by editing out a crucial final sentence: “But I think we can be tougher and we should be and we will.”
What does Ed Miliband think of Osborne’s criticisms?What does Ed Miliband think of Osborne’s criticisms?
“This morning [David Cameron and George Osborne] have been advancing a whole set of separate and totally contradictory arguments. That our proposals are: catastrophic because people will leave the country, cosmetic because they are not a big enough change and unnecessary because it is happening anyway ... They can’t make up their mind. But my challenge to the prime minister and chancellor is simple: stop defending the indefensible and abolish non-dom status.”“This morning [David Cameron and George Osborne] have been advancing a whole set of separate and totally contradictory arguments. That our proposals are: catastrophic because people will leave the country, cosmetic because they are not a big enough change and unnecessary because it is happening anyway ... They can’t make up their mind. But my challenge to the prime minister and chancellor is simple: stop defending the indefensible and abolish non-dom status.”
Another good idea. I really hope this is a serious proposal. Plans to scrap zero hours and now this. Anybody might think that there is mileage is returning to the core values of Labour! Hopefully not too little to late.Another good idea. I really hope this is a serious proposal. Plans to scrap zero hours and now this. Anybody might think that there is mileage is returning to the core values of Labour! Hopefully not too little to late.
How much would abolishing non-domicile tax status actually raise for the UK?How much would abolishing non-domicile tax status actually raise for the UK?
The Guardian’s economics editor Heather Stewart fact-checked the policy.The Guardian’s economics editor Heather Stewart fact-checked the policy.
If we assume all non-doms remained in the UK after Labour’s rule change, and paid full UK tax on their overseas earnings, that could raise up to £4bn.If we assume all non-doms remained in the UK after Labour’s rule change, and paid full UK tax on their overseas earnings, that could raise up to £4bn.
Some proportion of Britain’s non-doms would decide to up and leave the country altogether to avoid paying up. Others would choose to visit Britain for 89 days or fewer each year, allowing them to claim “non-resident” status.Some proportion of Britain’s non-doms would decide to up and leave the country altogether to avoid paying up. Others would choose to visit Britain for 89 days or fewer each year, allowing them to claim “non-resident” status.
This could cut the amount raised to around £1bn a year — but that is inevitably a highly uncertain estimate, due to the difficulty of gauging how super-rich individuals will respond.This could cut the amount raised to around £1bn a year — but that is inevitably a highly uncertain estimate, due to the difficulty of gauging how super-rich individuals will respond.
Has Labour’s pledge affected your vote? Share your views in the comments belowHas Labour’s pledge affected your vote? Share your views in the comments below
@GdnPolitics really, lets see the full wording and all the exclusions, he wouldnt do this without a major get out for non doms.....@GdnPolitics really, lets see the full wording and all the exclusions, he wouldnt do this without a major get out for non doms.....
Abolishing non dom status in the UK is a sensible policy and could end up an election winner!Abolishing non dom status in the UK is a sensible policy and could end up an election winner!
I completely agree. I just wonder if he actually will do so-my money is on the fact that he won't, but hey once you're in power....I completely agree. I just wonder if he actually will do so-my money is on the fact that he won't, but hey once you're in power....
Guilty as charged. He's braver than I though he was. This could change how Miliband is perceived by the public. He's showing that he can stand up to the wealthy.Guilty as charged. He's braver than I though he was. This could change how Miliband is perceived by the public. He's showing that he can stand up to the wealthy.