Fears over tax loophole as Scottish independence could see thousands of wealthy people start claiming ‘non-domicile’ status

Non-doms would only have to have a father born in Scotland, expert warns

Status only worthwhile for those with assets worth several million

Scottish independence could see thousands of wealthy people start to claim ‘non-domicile’ tax status, experts predict.

Mark Davies, a tax expert at website Nondom, said: ‘To claim non-domicile you would only have to have a father born in Scotland.

‘There are millions of people living in the rest of the UK who have Scottish parents.’

n practice, a much smaller number would claim the status, which is used by the wealthy to shelter income earned abroad. It is an offshore tax break for people who are temporarily resident in the UK but who say they consider their real home to be elsewhere.

Davies said: ‘You would have situations where Scottish people live in the north of England but move their business north of the border.’ That way, income from the company could be taken tax-free if it was not brought back into the UK.

If Scotland adopted UK tax rules following separation, people living in Scotland could claim England, Wales or Northern Ireland as their domicile.

The number of people claiming non-domicile status dwindled after a charge was introduced for non-doms resident here for seven years or more.

Only about 6,000 people pay the charge, which starts at £30,000 and rises to £50,000 for those resident for 12 years. Non-dom status is only worthwhile for those with assets worth several million pounds.