Beware the consequences of tax changes, says BBA

The announcement by HM Revenue and Customs amending plans to tax so-called “non-domiciled” workers living in the UK shows the Treasury is listening to business, says the British Bankers’ Association.

The BBA is currently reviewing the details of the announced changes to the residence and domicile tax rules. The BBA will continue to urge the Government against taking any action that could have profound effects on the attractiveness of the UK as a place to live and do business.

BBA Chief Executive Angela Knight said: “We welcome this clarification of the Government’s thinking on this vitally important issue. The danger of changes such as these lie in the unintended consequences and potential collateral damage: in this case for instance we risk losing people abroad who currently generate a lot of wealth for our economy. We could end up losing tax revenues rather than increasing them.

“Tax policies should grow no faster than oak trees. They take time to develop and mature and they cannot be forced. Ultimately they should be a robust support to the economy: their roots should not undermine it.”