The Government insisted that the current rules discourage non-domiciles from bringing their income or capital gains to the UK, creating barriers to potential investment in the UK economy.
The Government wants to ensure that the rules of our tax system are fair. That is why we are increasing the tax charge for those non-domiciles who have been resident in the UK for long periods of time.
At the same time, it is important that skilled individuals and investors are encouraged to come to the UK from abroad and we recognise the fact that non-domiciles can make a valuable contribution to the UK economy.
The Government is also considering re-defining the statutory residence test. At present, there is no full legal definition of tax residence, meaning that the rules are unclear, and complicated.