Quickfire: The Non-Dom Dilemma

Alistair Darling's pre-budget report has stopped the music at non-domicile residents' tax party. Those residing - but not domiciled - in the UK for seven years or more are now faced with a flat rate of £30,000 per annum or alternatively, paying the additional tax that is due from their overseas income and capital gains. This could lead to three scenarios:

1. They grit their teeth and show Alistair the money, in which case nothing changes.
2. They decide the new tax regime makes their non-dom status pointless and so move to the UK permanently after considering other cost of living factors. In which case, demand for housing, transport, schools and other infrastructure increases, albeit minimally.
3. They decide the new tax regime makes their non-dom status pointless and so move out of the UK completely after considering other cost of living factors. In which case, firms have to fill the gaps and job opportunities open up for domiciles, albeit minimally.

Given the combination of factors that make the UK an attractive destination, I suspect both non-doms and Mr. Darling will be baring their teeth but only one will be a smile...