Clause 34 - Location of assets etc
Finance Bill
11:45 am
Christopher Huhne (Shadow Minister, Treasury; Eastleigh, Liberal Democrat)
Over many years, I have listened to interesting discussions between the Treasury and various non-UK domiciled communities in the UK. Periodically, the Chancellor of the Exchequer tries to clarify the situation and hears representations to the effect that doing so would lead to a substantial exodus from the UK. I gather that the provisions are mainly aimed at that non-UK domiciled but UK-resident community. In the Minister’s view, is the potential use of bearer shares in UK companies likely to be significant enough to precipitate such a move? We are dealing with a sanctified tax avoidance measure—that is, the use of non-domicile status—that has been on the UK statute book for many years. The Government are clarifying a rather small element of it, but is the Minister certain that the provision will not lead to a substantial group of people leaving the UK for other jurisdictions?