By Julian Davies, Head, Private Banking UK and Jersey, Standard Chartered.
HMRC figures show significant contribution by non-dom taxpayers, and with new arrivals to the UK coming from emerging markets such as Asia and Africa, an international bank like Standard Chartered is well positioned to support non-doms across their entire move to the UK.
Annual statistical reports on non-domiciled taxpayers published by the HMRC reveal that the non-domiciled population contributes almost £9.4 billion of income tax, capital gains tax and national insurance receipts, and that the average non-domiciled taxpayer contributes £105,000 in tax and national insurance receipts based upon figures released for tax years 2016/17 and 2015/16 respectively (source: HM Revenue & Customs: ‘Statistics on non-domiciled taxpayers in the UK 2007-08 to 2016-17’).
The UK is an attractive destination for many high net worth and ultra-high net worth individuals due to the availability of high quality education, its healthcare infrastructure, culture and quality of life. Property in London remains attractive to overseas investors: at a recent roundtable with property experts that we hosted in Jersey, the general sentiment was there are still growth opportunities in London despite the uncertainty of Brexit.
Additionally, the UK Resident Non-Domiciled (‘UK RND’) population contributed 3.9% of the UK’s total income tax receipts yet only represented 0.2% of taxpayers by number (source: HM Revenue & Customs: ‘Statistics on non-domiciled taxpayers in the UK 2007-08 to 2016-17’). These figures emphasise the important role non-domiciled taxpayers play in assisting economic growth, and with the uncertainty of Brexit looming and its impact on the UK economy, this role is poised to grow in importance.
The UK RND’s contribution to the UK goes beyond tax revenue. Their role in job creation, human capital development and diversity cannot be underestimated.
With more than half of new arrivals to the UK comprising the African, Asian and Middle Eastern diasporas, clients are increasingly looking for a bank with an extensive network that can support them both at home and abroad (source: UK Census Records, 2011). This places Standard Chartered in a unique position to provide private banking and wealth management services to both new arrivals to the UK and to the existing UK RND population, given our presence in more than 60 markets across Asia, Africa and the Middle East and 165 years of international banking heritage. We can also support intermediaries whose clients want to move to the UK. We understand the challenges of establishing a new banking relationship in a foreign country and can work with them across their entire move to the UK.
We have developed a technology enabled private banking offering specifically for these individuals. Our UK RND offering provides clients access to a broad and diverse product suite screened for UK RND suitability, including global equities, funds and discretionary mandates specifically for UK RND clients. This is supported by a Jersey based banking platform that automatically segregates cashflows into a controlled bank account structure. (Screening conducted on a best efforts basis. Clients must obtain independent tax advice before investing).
Our team of experienced UK RND-specific Relationship Managers will work alongside a client’s professional advisor to provide optimal banking solutions for clients. By combining our breadth of knowledge and expertise with a comprehensive, technology based service tailored for UK RND, we have a service that is fit for today’s market and meets the needs of our UK RND clients for the longer term.
To find out more about Standard Chartered Private Bank’s UK RND services, please contact Rajiv.Gaglani@sc.com.