Thursday, 9 April 2015

Labour soft on Non Doms

Labour let Non Doms off £2bn in tax – Danny Alexander

·        Non Dom charges introduced by Liberal Democrats in Government would have raised £2bn had Labour introduced them during their 13 years in power.

·        The Liberal Democrats in Government have increased the amount of money Non Doms pay in tax this parliament – raising £160m-a-year for the public purse – by increasing the annual charges they are required to pay.

·        Today Labour stressed that people in the UK for a genuine temporary short period will be able to retain Non-Dom status. Experts believe this ‘grace period’ would be have to be at least five years.

·        But, as Ed Balls admitted, when he was a Treasury Minister, the vast majority of Non Doms spend less than five years here, so Labour haven’t even been able to put a figure on the amount of extra revenue their change would raise.

·        As the January clip of Ed Balls shows – Labour are all over the place on this policy and all over the place on the economy.

·        In contrast we have been clear. Liberal Democrat proposals to further increase the charges Non Doms are required to pay will raise over £500m by the end of the parliament. The Liberal Democrats will also end the ability to inherit Non Dom status.

Clive Jones Liberal Democrat candidate in Wokingham says,

"Liberal Democrats in government have started to address this issue and we'll go further in the next parliament. Its unlikely we have any Non Dom status people living in Wokingham but there are they should be aware that the Liberal Democrats will be expecting them to contribute more in tax during the next parliament."

Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:

“Labour had thirteen years in government to make rich Non Doms pay their fair share, yet failed spectacularly to do anything about it.

“Non-Dom numbers exploded under Tony Blair and Gordon Brown, more than doubling when Ed Miliband was an adviser in the Treasury.

“It’s clear that Non-Dom status cannot go on as it is, which is why Liberal Democrats in government have ensured those with the broadest shoulders make a fair contribution to Britain.

“We came down hard on those who stayed in the UK for long periods without paying their share - increasing charges on Non Doms year-on-year since 2010. Labour used to allow Non-Doms to sit in the House of Lords, Lib Dems stopped that.

“In the next parliament we want to go further by radically reforming the rules and significantly increasing the charges for Non-Doms to secure an extra £500m for the public purse. We will ensure that Non-Dom status cannot be inherited, and that long term residents in the UK pay tax as residents.

“The key tests are what maximises revenue for the exchequer and best supports our economic recovery. Our plans pass both those tests - Labour can't give a clear answer on either.”