Non Doms and the Emergency Budget

One of the Conservative policies was to change the tax regime for non doms. This involved a £25K non dom tax charge for all non doms to benefit from the remittance basis. Crucially it would apply irrespective of the length of residence in the UK. Under the current non dom rules you're only subject to the £30,000 tax charge if you are UK resident for more than 7 years and claim the remittance basis. This would therefore be much worse for non doms arriving to the UK, especially where they would only remain for a few tax years. For non doms who are long term UK residents it would have been a positive move, given the tax charge is £5K less. However, the coalition agreement published last week (20 May 2010) makes it clear that there won't be any immediate changes. In particular it states: '…We will review the taxation of non-domiciled individuals…' Therefore there shouldn't be any changes to the non dom regime in the 22 June Emergency Budget.