Dragon Duncan attacks Caan's overseas tax status

Duncan Bannatyne has had a dig at Dragons' Den colleague James Caan over his tax status.

The Scottish tycoon is accusing his fellow millionaire of having an "unfair" business advantage because he is non-domiciled - meaning he does not pay UK tax on his overseas earnings.

Writing in the Daily Telegraph, Duncan claimed his rival's non-dom status unfairly gives him more money to invest in his UK ventures, saying: "The non-dom situation is very relevant to business owners like me in the UK because we find ourselves at a distinct disadvantage when competing with businesses owned by non-doms."

It comes as James muscles into Duncan's health club territory, with plans to open a series of new fitness and leisure premises across the country.

He added: "(James) is venturing into the health club industry. As I pay UK tax on all of the earnings that fund my lifestyle, and corporation tax on all the profits made by my businesses, I am clearly at an unfair disadvantage."

Duncan - whose business empire includes 60 health clubs bearing his name - added: "It's just as well James and I get on so well, and there couldn't be a nicer man to be in competition with, but you see my point."

He is calling for a change in the law to prevent non-domiciled residents reducing the tax paid on UK earnings by applying charges between companies in different tax jurisdictions.

The entrepreneur said: "In my view, all UK residents should have a duty to pay UK tax unless they can prove that they are paying equivalent taxes elsewhere in the world."