George Osborne added:
"I am introducing a new £90,000 charge for those resident in this country for 17 of the past 20 years."
"I want to preserve the non-dom status that makes our country attractive, but I want them to pay a fair contribution while having certainty about their future arrangements.
"In the next Parliament the £30,000 annual charge will remain unchanged; those who have been here for 12 of the last 14 years will see their payment rise to £60,000; and I am introducing a new £90,000 charge for those resident in this country for 17 of the past 20 years.
"And to tackle the continued use of enveloped properties to avoid stamp duty, I am increasing the new annual charge by 50% above inflation on properties worth over £2 million."
Jennifer McNally, Private Client Manager at London Chartered Accountants Blick Rothenberg LLP, said:
“The favourable remittance basis regime that applies to Non-UK Domiciled individuals who are residents in the UK allows them to decide annually whether to claim the remittance basis of taxation and, for those individuals resident for more than 7 tax years, pay the associated charge.
“A claim for the remittance basis limits the scope of UK tax to UK source income and gains and foreign sources only to the extent these are brought into the UK.
“The Chancellor’s proposed consultation however, suggests a remittance basis claim will remain effective for three tax years, regardless of whether this is tax efficient for the individual. This provides more uncertainty rather than the certainty promised by him earlier.”
Robert Maas from accountancy firm Carter Backer Winter added:
"The increase from £60,000 p.a. to £90,000 p.a. for non-doms who have been here for over 17 years is an invitation for such people to emigrate. A lot of such people will be entrepreneurs who have been here building up businesses.
The recasting of SDLT, whilst sensible requires a 12% tax rate on the slice over £1.5million to ensure that the yield does not drop by too much. Buying a £5million house will in future cost £514,000 in SDLT, rather than £350,000. Whilst an extra £164,000 will probably not deter the ultra rich, it could well deter many of the overseas investors who are buying the flats that enable housing developments which include a large proportion of lower value flats to take place. The Government is cutting off its nose to spite its face in its witch hunt for tax evaders. The UK economy will miss the purchasing power of these big spenders."
