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Also, see UK non-domiciled status. - Suppose someone has significant assets in, say, Canada. - They move to the UK and claim non-domiciled status on their tax

Also, see UK non-domiciled status. - Suppose someone has significant assets in, say, Canada. - They move to the UK and claim non-domiciled status on their taxes, which means they only need to pay taxes on income which is moved into the UK. - They stay in the UK for 7 years, leaving their assets in Canada. - They then move back to Canada Because the assets were never moved into the UK, there is no need to pay UK taxes on the capital gains/income, under the non-domiciled rules of the UK. Because they were non-Canadian residents, there is no need to pay Canadian taxes on the capital gains/income. (Only the US taxes non-resident citizens) In other words, they get 7 years of gains/income which get 0 taxes. I use Canada in this example, but this works for a large number of source countries. No wonder certain neighborhoods in London are filled with Russian oligarchs...

chinathrow 11y ago
And again, the UK's hypocrisy is unbelievable. Trying to shut down other tax heavens while one of the biggest is right there...
Demoneeri 11y ago
I'm not sure that will work, at least in Canada. In Canada, if you have sizable assets, you will still be considered resident even if you leave the country for many years. To be considered non resident in Canada, you need to sell everything. Even having a storage locker could trigger you as a resident because it means you are not leaving for real.
lordnacho 11y ago
Are you sure about the Canada side? I heard most countries tax it as long as the money is made there. I actually think the UK non-dom thing is reasonable. You pay tax to support a state, which in turn protects your assets and provides various services. If you can't bring your money in, it's not protected by that state. You're also not using it for any kind of gain (pleasure, investment, etc) in the UK, so why it any of their business? On the other hand of course whatever state it is in should be allowed to tax you.
_delirium 11y ago
I thought something was actually going to get done about this a few years ago when a high-profile controversy came up over Parliamentarians holding non-dom status. But instead the change ended up really narrow [1]. Members of Parliament can't have non-dom status anymore, presumably because that looks particularly bad, but the ~100,000 or so non-doms who aren't in Parliament were unaffected. [1] http://www.legislation.gov.uk/ukpga/2010/25/part/4 http://www.legislation.gov.uk/ukpga/2010/25/part/4

chinathrow 11y ago

And again, the UK's hypocrisy is unbelievable. Trying to shut down other tax heavens while one of the biggest is right there...

Demoneeri 11y ago

I'm not sure that will work, at least in Canada. In Canada, if you have sizable assets, you will still be considered resident even if you leave the country for many years. To be considered non resident in Canada, you need to sell everything. Even having a storage locker could trigger you as a resident because it means you are not leaving for real.

lordnacho 11y ago

Are you sure about the Canada side? I heard most countries tax it as long as the money is made there. I actually think the UK non-dom thing is reasonable. You pay tax to support a state, which in turn protects your assets and provides various services. If you can't bring your money in, it's not protected by that state. You're also not using it for any kind of gain (pleasure, investment, etc) in the UK, so why it any of their business? On the other hand of course whatever state it is in should be allowed to tax you.

_delirium 11y ago

I thought something was actually going to get done about this a few years ago when a high-profile controversy came up over Parliamentarians holding non-dom status. But instead the change ended up really narrow [1]. Members of Parliament can't have non-dom status anymore, presumably because that looks particularly bad, but the ~100,000 or so non-doms who aren't in Parliament were unaffected. [1] http://www.legislation.gov.uk/ukpga/2010/25/part/4 http://www.legislation.gov.uk/ukpga/2010/25/part/4