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As recently reported in the FT, the levy on non-domiciled individuals raised £178m for the UK exchequer for the 2011-12 tax year. This represents a 6% rise on the prior year, and the highest figure since the levy was introduced in 2008.

No doubt HMRC will be pleased with this, but it also serves to underline how the UK represents an attractive home for wealthy and talented foreign nationals, and the contribution that they make to the UK economy.

In short, a £30,000 charge applies where a "non-dom" has been UK resident in at least 7 of the previous 9 tax years, increasing to £50,000 for someone who has been resident for at least 12 of the previous 14 years. Clearly, many see this as a price which they are willing to pay for the ability to defer/exempt income and gains they generate overseas from UK tax, and also to enjoy the wider benefits of living here.

The UK has perhaps proved more attractive in light of the more stringent tax regimes implemented by other European states, notably in France, Italy and Spain for example. We continue to see a steady flow of senior executives and other wealthy individuals moving to the UK, often citing the unfavourable changes in local tax laws.

There are various nuances to claiming non-domicile status in UK, and to paying the £30k/£50k remittance basis charge where relevant. Our team is specialised in these areas, and would be happy for individuals who are interested in tax breaks for expatriates in the UK to contact us.