Wealthy non-doms advised to 'splash the cash'

Well-off non-domiciled residents in the UK have been advised to splash out on luxury items before new tax legislation comes into effect.

According to a report by the Financial Times, such residents now have a total of ten days to spend money on items such as private jets, cars and rare books as a way of avoiding large tax bills.

Under the new rules, which take effect on April 6th, any item valued at more than £1,000 with income derived from foreign sources carries a tax levy of 40 per cent.

"If you buy a yacht and bring it into the UK, and it is moored in Southampton on the evening of April 5th, you can bring it backwards and forwards to your heart's content and it will not lead to a tax charge," said Patrick Stevens, a representative from Ernst & Young, a firm that specialises in areas such as tax and advisory services.

The new legislation applies to non-domiciled residents of the UK, who for the last decade have been resident for seven years.