A Taxing Question for Gordon

Non-domiciled steel billionaire Swaraj Paul has pledged to finance the election campaign of Gordon Brown if the prime minister calls a snap election.
Lord Paul told Channel 4 in an interview that 'if there is an election, whatever I can pay I will pay. I am a believer in Gordon Brown'.

Whilst his offer of the readies must be a relief to the cash strapped Brown, will he accept it?

Since the Treasury launched its off-shore disclosure crackdown the no. claiming non domiciled status has increased by 74%.

Alistair Darling is currently undertaking a review of the non domiciled rules under which non doms don't pay UK tax on foreign income. Whilst it makes a change to see Brown's regime target a group other than the sitting ducks - the UK middle income population he despises, the whole issue is highly controversial, splitting opinion of employers, the public and tax professionals alike.

Figures for 2004/5 reveal non-domiciled residents paid £3bn in tax on their £10bn UK income. This effective 30% tax rate despite paying no tax on foreign income indicates the value that non-doms create for the economy.

Combined with the City's fear that a change in regime would lead to a brain drain these figures must be a headache for a Government keen to be seen by the general voting public to be taxing the non doms rather than them, yet needing to retain UK global competitiveness.