AORA’s Post

CIP Consistent, Insistent and Persistent The PM, Chancellor and Labour have the Power to Change The System A Wealth Tax as requested by patriotic Millionaires and a Financial Transaction Tax of 0.025% to 0.1% would solve UK problems and all information was sent to PM, Chancellor and Treasury in July 2024. This explains the option given to #Camoron and #Osborne in 2014 who chose #Austerity instead and well worth reading https://lnkd.in/ewypgsr8

Forget increases in CGT rates and tightening of IHT Business Relief rules, could a new Wealth Tax be on the horizon? 💰 The below article sits behind a paywall (apologies), but what is interesting is Labours landslide election win comes just months after 4 ministers from separate G20 member countries publicly agreed that a 2% wealth tax should be levied on the worlds 3,000 billionaires. 💵 Is this the start of something big? I suppose only time will tell ⏰ .................... #PKFSC #PKFGlobal #Tax #TransactionsTax #DealsTax

So what 'easy' tax steps could the new Labour Government take to drive forward UK Economic Growth? It has long been recognized that the UK tax system is unduly complicated and that - in many cases - it actually does nothing to encourage taxpayers (workers) to develop their own skills and / or to take those potentially riskier jobs with 'high growth' (but high risk) businesses. As such, if Rachel Reeves, the new Chancellor of the Exchequer (Treasury Minister) is serious about supporting the growth of people's 'economic capital, it is important that she focusses on issues such as the provision of tax relief for personally incurred training courses. The below hyperlink provides a summary of the various areas from an employment tax / personal tax perspective which Ms Reeves should be pro-actively addressing, to drive forward the UK economy. Whilst all of these steps do have a direct 'tax cost' to them, the reality is that the cost of 'doing nothing' (and avoiding these areas) is - in my honest opinion - likely to be even more expensive for UK Plc in the longer-term. #generalelection #labourgovernment #taxchanges https://lnkd.in/ekCWbFbg

Normally taxes are triggered by an event or some behaviour. A death... or trade... or the generation of income or a gain. Wealth taxes simply take things off people even if no event or behaviour occurs. Much closer to what an older generation would call "expropriation" than what is currently understood as "tax" That's a major conceptual shift for the UK. The proponents of such a change need to make a case for that which is stronger than "we want the money"... https://lnkd.in/d65ZVRZD

“Keir Starmer has ruled out increasing income tax, corporation tax, national insurance or VAT — which together make up two thirds of all government revenue — if his opposition party wins the July 4 general election. But a weak growth outlook makes manifesto promises to stabilize debt look undeliverable unless Labour looks across the tax base, according to a Bloomberg Economics report. [ ] A focus on wealth, pensions and businesses will likely be needed to keep the public finances on track. [ ] Capital gains is one of the main options on the table. Shadow Chancellor Rachel Reeves has floated aligning tax bands for capital gains with those for income, with the top rate going from the current 28% to as much as 45%. [ ] Other targets could include council tax — a levy on residential property — and reducing the generosity of pensions-tax relief for higher earners. [ ] With no obvious policy lever to reach for, Labour will have to get creative.”

Currently, investors face no capital gains tax when leaving the UK as long as they leave Britain for more than five years. There are calls for an 'exit tax' to be brought in alongside the rumoured controversial wealth taxes in the upcoming budget. These measures are forecasted to cause a significant number of super-rich individuals to leave the country and move their assets outside of the UK. 🛫 The last budget saw the pending changes to the taxation of non-doms and other countries like Australia have adopted this 'exit tax' route already. 👉Do you think this will bring in much-needed revenue to the UK or harm the economic landscape? #wealthtax #exittax https://lnkd.in/eidF9uF3

Tax in the UK needs simplifying. The Labour Party plans to close non-dom Income & CGT, plus IHT loopholes on offshore trusts by abolishing transitional reliefs and ending 'excluded property' status. They also confirm no plans for a Wealth Tax or targeting expensive houses. Is this simple enough?

My friend Grahame Jackson posted on Labour's plans for a wealth tax. This is my thoughts, taken from long comment(s) on Grahame (international tax law expert's) thread. With an added comment criticising the Labour class warriors hostility to private schools based on inverse snobbery and prejudice. What is needed is a philosophical and economic basis to a tax policy. The comments so far are simplistic - this isn't framed as a hit the wealthy (they - Labour - mean 'the Rich', the kind of rich 'they' don't like), it isn't a 98% tax, but it is simplistic group think. 1. There is merit in the idea of taxing 'unearned' wealth, just as there is unfairness in wealth being passed on to successive generations, getting money they haven't earned. 2. But Labour in Britain seem to equate property and owning stuff with wealth and money (just as many old Liberals equate land with wealth) and fail to understand that people with property, land, assets, etc. are often not wealthy or rich. For me the same is the Labour and Tory addiction to unfair National Insurance . 3. National Insurace is a tax on jobs and working people that both Labour and Conservatives claim to oppose but utilise while always failing to get working age people off benefits in to work. 4. Labour and Conservatives both love unfair local property taxes - yes Poll Tax was wrong as not based on ability to pay but Labour believed in rates where people paid tax totally unfairly just based on the value of a property. Neither have proposed a local taxation system based on income and ability to pay. It is massively hypocritical. 5. Liberal Democrat local income tax is fairer, but still doesn't reflect equality in terms of everyone contributing 6. Of course Mansion taxes are aimed at oligarchs and billionaires, but still a taxation policy based on house prices (as Labour love) ignores the fact that house prices are often accidental and often elderly people or retired or older people are living in houses worth a lot but they don't have a lot of income themselves. There is an inverse snobbishness and 'class war' element about these policies. Policies mostly propagated by 'middle class' professionals who did elite degrees at elite universities protesting that they are 'working class'. 7 follows - my comment on the Labour prejudice against parents spending money on education.

Labour may have to increase taxes on the UK’s wealthy, according to a new analysis. Keir Starmer has ruled out lifting income tax, corporation tax, national insurance or VAT — together projected to make up two thirds of all government revenue — if his opposition party wins the July 4 general election. But a weak growth outlook makes manifesto promises to stabilize debt look undeliverable unless Labour looks across the tax base, according to a Bloomberg Economics report. “The strategy might win it more support but it significantly reduces the party’s options for dealing with the fiscal challenge that awaits it if it comes to power,” said economists Ana Andrade and Dan Hanson. “A focus on wealth, pensions and businesses will likely be needed to keep the public finances on track.” Read more in my Bloomberg News story https://lnkd.in/er2c4Jeq

As discussions around Labour potentially introducing a wealth tax continue, our latest article provides an objective overview of what this could mean. We explore how such a tax might be structured, with examples from other countries, and consider the possible effects on individuals and businesses. Read on to learn more.