U.K. Addresses Art World's Concerns Over Foreigner Tax

LONDON—The U.K. government has addressed concerns from the art world that a proposed tax on non-domiciled residents would discourage foreign-born collectors from living and giving in Britain, reports Bloomberg.

Starting in April, the U.K. plans to give resident foreigners the option of declaring worldwide income or paying an annual tax of £30,000 ($58,000). The art world has spoken out against the tax, pointing out that some of the U.K.'s most important art collectors and philanthropists are foreigners.

At a recent philanthropy conference, Nick Ferguson, chairman of the Courtauld Institute of Art, said that 60 percent of the institute's funding in the last five years was from foreigners, as well as more than 35 percent of funding for the Victoria & Albert Museum. The top three donors to the British Museum are also non-domiciled, he said.

Said Margaret Hodge, Minister of State for Culture, at the conference, "We've got to ensure that in this legislation there isn't an unintended consequence. I recognize the issue. We've just got to get it right."