Non-dom levy gives boost to public purse

More people than predicted have paid the £30,000 non-dom levy introduced by the Government — giving the public purse a huge boost, new figures show.

The HM Revenue and Customs statistics show that about 4,200 individuals have so far paid the charge for the 2008/9 tax year, the first since it was brought into operation.

The figure is slightly higher than the 4,000 predicted by the Treasury prior to the tax's introduction and means that total receipts for the taxpayer stand at £126 million.

The new statistics also appear to indicate an exodus of high earners — which some critics said would follow the introduction of the levy — has not materialised.

The charge applies to people who have been resident in the UK for seven of the past 10 years but who have non-dom tax status, which lets them escape tax on overseas earnings.

It was criticised by the Lib-Dems, whose leader Nick Clegg called it a "flea bite" for foreign billionaires using the UK as a tax haven.