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Tax News - Monday 30th November 2009

Is Zac Goldsmith an unwelcome distraction for the Tories?

Is Zac Goldsmith an unwelcome distraction for the Tories?

Despite the fact that Zac Goldsmith has confirmed that his tax affairs in the UK are very much in order, even though his non-domicile status is attracting unwelcome attention, it seems that the popular press has picked up on this particular situation and the Labour Party is looking to make great headway in the polls. In many ways this is a sharp lurch back to the situation we saw 12 months ago when the subject of non-domiciles dominated the headlines in political circles.

In simple terms, a non-domicile status does have certain tax advantages for those living in the UK but even though Zac Goldsmith has confirmed he has not made use of his non-domicile status on the tax front, it does appear to be impacting upon the image of the Conservative party. Indeed we have already seen the Liberal Democrats suggesting that Zac Goldsmith should be relieved of his standing within the Tory party and removed from the list of candidates for Richmond Park, London.

However, if the Conservative party are quick off the mark there is the potential to use the Zac Goldsmith situation as an example of a non-domicile who is paying taxes in the UK as any other UK resident would, despite his non-domicile status.

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