To think it sets a really bad example for the country when the PMs family have tax dodged millions

[Chloefairydust]

Just that really…

Im really surprised Sunak actually made it to be prime minister considering the recent stories that have been in the news regarding his family avoiding millions of ££ in tax . I actually thought Boris would have been more likely to have been PM. (Not that he’s any better🤔)

Yes they are taxed twice but under UK tax rules most individuals receive a deduction or credit against their tax liability for tax already paid in other countries. This applies to both UK domiciled or non UK domiciled individuals so I doubt anyone has an issue with this.

Where it gets to be unfair is when a non domiciled person is offered an election to disregard the normal UK tax rules and pay an amount which will often be a lot less than would have been otherwise due to HMRC instead.

This is not a loophole, it's written in the legislation but there must be a reason the UK government doesn't addrsss it. Personally I don't see how UK domiciled nationals can be asked to pay higher and higher levels of tax when people who live here for decades almost on a permanent basis but have non dom status can pay preferential rates of tax. It doesn't matter if they don't use the NHS or local schools. A lot of other taxpayers don't either, that's not how it works, the money is pooled to provide a variety of services to everyone.

With regards your point about the OECD, I assume other countries set their own tax rates and so get first dibs on the profits generated abroad by taxing them under their own tax regime so the UK doesn't need to divert money to them, other countries can get a higher proportion of this by increasing their own tax rates before its taxed in the UK.

Seriously, name me a poor Prime Minister

According to a HMRC flow-chart I've just come across, it is not true that you have to have a definite intention to return, in order to be a non-dom. The first question is about future intentions, there are three options, stay in the UK, leave the UK, and "no firm plans". Following the "no firm plans" path and choosing the options I think she would, she still ends up as a non-dom.

Specifically, if you have "no firm plans" about where to live, you were born abroad, your father was born abroad, you have personal ties to your father's country, and you have personal ties to the country you were born in, you are a non-dom.

assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/430830/hmrc6.pdf

Ffs. Give it a rest. It’s legal. What else can we dig up on him to discredit him is it? He’s actually not done anything illegal. You don’t like him and his millions - fine. He hasnt done anything illegal! What on earth is ‘legal loophole?!’

Do you really honestly believe she had "no firm plans" about whether or not to stay in the UK with her husband and children?

In this case, it's because your future intentions are within your mind, and it's completely impossible to prove that you are lying. But we can all draw our own conclusions.

Could you point me in the direction of guidance/ legislation that non dom stays depend on stated intention?

I've read Chalter 5 section 21 of the Income Tax Act 2003, and I can't find it.

@minou123 www.gov.uk/tax-foreign-income/non-domiciled-residents

Here.

"Non-domiciled' residents:
UK residentss_ who have their permanent home (‘domicile’) outside the UK may not have to pay UK tax on foreign income."

Thus, if your permanent home is in the UK, you have no business claiming to be non dom.

She is 42. Born in India, went to school there. Then studied economics and French in California. Then masters in Business at Stanford. Where she met him.

(I actually read that he was quite non descript and none of his professors remembered him, but that they all remembered her because she was impressive.)

She has a number of shares in her fathers business, and a number of homes. When was the plan to go back to india? Leaving her 2 daughters in the uk? But now, because she is no longer non-Dom, we can brush it under the carpet, can't we.

I wonder if the tough times ahead Sunak has referred to will include an examination of current tax laws to draw more into the treasury. Somehow I doubt it. I know labour is going to address the nondom issue.

Someone above mentioned salary sacrifice schemes. I have often wondered how much of a tax loss these schemes amount to across the whole country, money that could be spent on services, as people have ‘pretend’ salaries and ‘win win for all’ except those for whom this revenue could have been used for.

So to the original subject, if schemes are available they will be found and used. It is the schemes that need to be addressed.

@Stationsofthecross

That kind of post really gets on my nerves. "Yuk. You all only hate him because he's rich".

No. I don't hate rich people. But people not doing what is morally right gets on my nerves. Like I said before the Starbucks and Amazon thing is wrong too.

I find it hard to grasp why more isn't done on these issues.

I take it that everyone here pays all the tax up to the maximum limit and never uses any tax legal avoidance scheme whatever? If you do that you are a hypocrite criticising somebody else who does.

Are you really suggesting his wife is actually not a resident of the UK? Her husband works in UK, her kids attend school in the UK, it really was a dubious status and it’s a good thing they stopped it (under pressure but still)

Its not the same as working and living abroad

That doesn't mean what you think it means.

"Permanent home" and "domicile" have specific meaning in UK Tax. I think you are looking at it in layman's terms.
If you read the guidance notes a bit further down, it explains what permanent home and domicile means.

@minou123

Could you quote the part that says "permanent home" means somewhere you only intend to stay temporarily?

So much this. Did you even think this through before posting OP? I've said before and I'll say again ~ you don't half post some weird stuff.

A non issue? I can't believe people are defending this.

Even if they're wealthy and use private services, they will still be using some public services since they live here, are raising their kids here, reside here. But avoid paying taxes.

How can people complain about the state of the UK/cost of living crisis/hungry children yet turn around and think that it's ok for our PM who lives in the UK and is supposed to have UK's best interest in mind doesn't even bother to pay taxes here?

Absolute joke. Maybe we get what we deserve apparently.

@minou123

To give more detail, here is the flowchart mentioned by a PP.

The only routes to claiming non dom status are if you "intend to leave the UK" or have "no firm plans" to stay.

I ask again, do you honestly believe that she intended to leave or had "no firm plans" to stay here in the UK with her British husband and children?

She was and is paying UK tax, on her UK earnings, if you dont understand the situation its best not to comment.

Or maybe we are people with common sense who think the PM of a country should pay tax in said country. Especially when he's living here, raising his family here, using public services here.

It's immoral and wrong. Not to mention they've both been born into wealth and probably haven't actually had to work hard a day in the life.

Don't complain about the UK economy or cost of living if you're totally onboard with politicians being so sleazy. As Rishi was lecturing us about how we're all squeezed. No were not, some of us also pay tax on top unlike him.

Oh yes just like Jeff Bezos is paying tax? Or Starbucks?

Probably not. Because in a legal (but immoral) way they are able to minimize their on paper UK earnings.

If you can't think critically maybe it's best not to comment.

@Skyellaskerry

I wonder if the tough times ahead Sunak has referred to will include an examination of current tax laws to draw more into the treasury. Somehow I doubt it. I know labour is going to address the nondom issue.

Ironically it was Labour in 2008 who introduced the current Non Dom rules for paying an annual charge instead of paying tax at current rates, which is presumably what Rishi's wife benefitted from.

I didn't claim it does.

"Permanent home" has a different meaning under UK Tax Law, which the guidance notes in Chapter 5 explains.

Just as "resident" has a different meaning under UK Tax Law

The meaning isn't as straightforward as: are you intending stay temporarily or for the foreseeable future.
There are a lot of factors, facts and background that have to be reviewed to determine Non Dom status.

But we are not discussing them. We are discussing 1 person. Who based on UK Tax Legislation was deemed to be non domiciled and as such didn't have to pay UK tax on non UK earnings that weren't remitted into the UK. If you think the non domicile rules written into UK tax legislation are wrong thats one thing but as an individual she did nothing wrong.

@minou123 referring to the flowchart I posted above, could you explain how she qualifies?