Super rich foreign owners of British football clubs could be among those to make a major saving on their UK investments thanks to George Osborne’s moves to ease tax rules for wealthy non-doms, the Evening Standard reports.
While the Chancellor has upped the annual levy for non-doms from £30,000 to £50,000, he will let wealthy foreigners bring money into the UK to invest in British trading companies without having to pay tax on gains from that overseas income.
“It is very good news for non-doms,” said Maurice von Bertele, director at accountants Grant Thornton. “For a serial entrepreneur who has made gains offshore and wants to invest money in the UK, it’s fantastic.”
“There’s a double benefit because with the increase in entrepreneurs’ relief, they can make up to £10 million on future gains on that UK business and only get taxed 10% on it.”
Arcelor Mittal boss Lakshmi Mittal, a 33% shareholder in Queens Park Rangers is among those thought to enjoy non-dom status. The £50,000 annual levy only applies to non-doms living in the UK for more than 12 years who don’t want to pay tax on their overseas income.
“It will only be loose change for someone who can afford a football club,” said Cormac Marum, partner at tax consultants Harwood Hutton. “A club owner might well benefit from the relaxation of rules on investing overseas profits in British trading companies.”
Non-doms still don’t have to pay until they have been living here for seven years, when the £30,000 levy kicks in.
Osborne’s commitment not to change the rules again during this Parliament is another bonus. “I think they’ll see the extra £20,000 as a small price for the certainty,” said von Bertele.
Plans to cut corporation tax faster than expected to 23% and a signal that 50% income tax is temporary also send positive signals.
Ashley Crossley, Chair of European wealth management at law firm Baker McKenzie, said: “This Budget will certainly encourage inward investment by resident non-doms and make the UK an attractive place to locate.” Source: Evening Standard.
The government is also relaxing immigration rules for wealth residents by allowing those who invest £10 million here indefinite leave to remain (ILR) after just two years and after 3 years. For those with a mere £5 million to invest in the UK will have to wait 3 years before they can become a permanent resident, a two year jump on ordinary migrant settlers.
The right to accelerated settlement will apply to those investors who are already in the UK and have invested large sums, as well as new arrivals.
Tier 1 (Entrepreneur) migrants will also be able to settle in the UK more quickly if they create 10 jobs or turn over £5 million in a 3-year period.
Immigration Minister Damian Green said:
‘Today I have sent out a clear message – the UK remains open for business and we want those who have the most to offer to come and settle here.
‘Entrepreneurs and investors can play a major part in our economic recovery, and I want to do everything I can to ensure that Britain remains an attractive destination for them.
‘Last year we issued far too few visas to those who wish to set up a business or invest in the UK – I intend to change that.’
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