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Thursday, 20 September 2007

A Liberal view of taxation

Vince Cable, the party’s Treasury spokesman, has “promised” to close the loophole that exempts non-domiciles from tax on their British homes. Under his proposals, they would also lose their status if they stayed in Britain beyond a few years. The promise is a weak one because the Lib Dems will never take office.

“The rich and well-advised exploit loopholes and end up paying 10 per cent tax rather than 40 per cent. Non-domiciles taking advantage of offshore trusts avoid capital gains tax and people avoid stamp duty by registering their house as being owned by a company,” he said.

This howver, didn’t stop the Lib Dems accepting £270,000 from Alpha Healthcare, a UK company owned by Harberry Investments a Tortola based company, run by Bhanu and Dhruv Choudrie, owners and residents of substantial properties in West London, who nevertheless claim non-domicile status with respect to the income accruing in their Tortola company. A fine example of how UK profits can be routed offshore so that UK residents can avoid tax.

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