UK's Hunt says "non-dom" tax status to be abolished

Britain's finance minister Jeremy Hunt on Wednesday said a system which allows UK residents including foreign nationals to avoid tax on their overseas income would be scrapped, a policy he said would raise 2.7 billion pounds ($3.43 billion) a year. "After four years, those who continue to live in the UK will pay the same tax as other UK residents." ($1 = 0.7861 pounds)

Britain's finance minister Jeremy Hunt on Wednesday said a system which allows UK residents including foreign nationals to avoid tax on their overseas income would be scrapped, a policy he said would raise 2.7 billion pounds ($3.43 billion) a year. So-called "non-domiciled" status in Britain had been available to people who live in Britain but do not regard it as their permanent home, and allowed them to opt to pay UK tax only on income earned in or transferred to Britain.

"The Government will abolish the current tax system for non-doms," Hunt said in his annual budget speech. "After four years, those who continue to live in the UK will pay the same tax as other UK residents."

($1 = 0.7861 pounds)