Non-domiciled investment tax charges to be scrapped

The tax charges levied for non-domiciled investment in UK businesses are set to be scrapped by chancellor George Osborne, according to the Telegraph.

These rules have previously seen wealthy non-doms seek offshore business investment opportunities in a bid to avoid the significant charges they would face for investing in UK based businesses.

Under current laws, non-doms face a bill of full capital gains tax or income tax charges on any money they choose to invest in the UK from abroad.

However, the UK could be set for a major overhaul of these rules, according to the Telegraph, as the chancellor moves to make domestic investment a more attractive option globally.

Despite these concessions though, high net worth individuals may still have some room for concern, with any property purchases made through an offshore company formation now facing a stamp duty tax of five per cent.

Under previous rules, offshore businesses faced a stamp duty charge of just 0.5 per cent.

The move comes after a KPMG survey found that investors were moving away due to the notably high tax rates, with UK residents facing the fourth highest tax charges in the European Union.