London becomes tax haven

London becomes tax haven

The Observer reports that London has become the fastest growing destination for international tax avoiders: "Thanks to 208-year-old laws designed to ensure British colonialists kept their overseas income intact, billionaires are now flocking to London in rapidly increasing numbers."

The number of people benefiting from non-domicile status has increased massively over the last five years. The Treasury, in response to questions lodged by The Observer under Freedom of Information legislation, confirmed that 112,000 individuals indicated non-dom status in their self-assessment returns in the tax year to April 2005. That is a 74 per cent increase over 2002's figures.

Welcome to London, the onshore tax haven (The Observer, 8 July 2007)