West Palm Beach (HedgeCo.Net) – Shortly after Alistair Darling outlined his plans to increase taxes on non-domiciled UK residents, the Alternative Investment Management Association is urging him to reconsider.
A non-domiciled resident is a foreigner living and working in the United Kingdom, who only pays taxes on their UK income – not any overseas income.
Of all the businesses that would be affected by the new legislature, it seems that hedge funds would be hit the hardest. The AIMA fears that hedge fund managers will relocate in response to the increased taxes, causing the overall tax revenue of the UK to decline substantially.
Out of the ten largest hedge funds in London, 35% of the directors on non-domiciled residents.
The proposed legislation, which is scheduled to be enacted in April, calls for a flat rate tax of £30,000 (approximately $58,000), a year for all individuals who have lived in the UK for more than seven years.
“We urge the Treasury to reconsider the measures and potential impact carefully and comprehensively. At the least, we ask that the introduction of the measures outlined be postponed, while full consideration of the impact and the detail is undertaken.”
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: [email protected]]
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