Budget 2008: Special remittance of taxation will continue for non-doms

The government has confirmed that the special remittance basis of taxation will continue for non-domiciled UK residents.

Adults who have been resident in the UK for seven out of the last ten years will be subject to an annual tax charge of £30,000 on their foreign income and gains they leave outside the UK unless their remitted income and gains are less than £2,000.

This has risen from the previous remitted income of £1,000.

George Yeandle, head of international mobility at PricewaterhouseCoopers, said: "In the past employers did not have to consider the personal circumstances of foreign candidates before employing them.

"I never believed that there would be a mass exodus [of non-domiciled UK residents] after seven years, but the main issue now for employers will be in implementing the changes. It will impact non-doms in a very uneven way."

The government has decided that there is no case for implementing any further changes.