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11 October 2007 / Keith Johnston
Issue: 7292 / Categories: Opinion , Tax
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Fair game?

Keith Johnston flushes out the politics on IHT
and non-doms

At the start of the month George Osborne appeared to pull off a masterstroke. The shadow chancellor announced, if elected, he would lift inheritance tax (IHT) thresholds to £1m and abolish stamp duty for first-time buyers in homes worth up to £250,000. To do this he wants to charge non-domiciled individuals (non-doms) £25,000 and he said the move would raise £3bn.

Advisers to non-doms in the City were stunned, but muted by the size of the levy. After all, a £25,000 charge was unlikely to be enough to scare people away. The non-domicile policy works, they claim, and London has been phenomenally successful at attracting wealthy foreigners. Research by the Society of Trust and Estate Practitioners (STEP) suggested that non-doms were highly mobile. Yet the media loved the idea of taxing foreigners to save on IHT, as did the man in the street, with Labour strategists claiming this accounted for much of the 8% swing back to the Conservatives.

But Osborne is not chancellor and does not make government policy. Alistair Darling shot back, claiming

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The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
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After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
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