Grahame Jackson’s Post

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's non-dom update: yesterday, the Treasury released three papers giving more details on the key tax policies from their manifesto. Christopher Groves and Ed Cubitt detail the changes of taxation of non-doms, inheritance tax, carried interest and school fees in our article below.

As predicted, we are now seeing fiscal reality start to override policy driven by political “vote winning” aims. The last 48 hours has seen reports that the government is reconsidering non-dom changes in the wake of new projections of the economic impact by the OBR. The HNW advisory industry has been pointing out for months now that the projected tax take was flawed and the changes won’t achieve the intended fiscal aims. Hopefully we aren’t too late to mitigate some of the damage done to HNWI confidence in the UK as a jurisdiction to live and invest in. The problem is continued uncertainty, the timescale is very tight and in the end political doctrine may still outweigh the fiscal voice of reason.

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

🗞 The Labour Party is considering raising money through wealth taxes to invest in public services if they win the election. 🗞 An increase in CGT on assets like second homes and business shares is being discussed, potentially raising £8 billion. 🗞 One option is to change inheritance tax rules for agricultural land and business assets, which some wealthy individuals use to avoid taxes. 🗞 Labour might also consider changes to how inheritance tax applies to gifts. https://lnkd.in/eT54RvW5

If you spend 5 minutes doing anything today then just to read this The Guardian article as it sent shivers down my spine. A few things that hit home: 1) A further £25bn of tax increases from Reeves would push tax close to 38% of GDP. 2) Since the middle of last month, the interest rate – or yield – on 10-year UK gilts has increased from 3.75% to just below 4.2%. 3) IFS says an ageing population and the loss of fuel duty and tobacco revenue as people switch to electric vehicles and stop smoking would mean further tough packages in the future. I can predict the next government will absolutely increase VAT and or income tax as these crazy election promises to not raise direct taxes means the chancellor is rearranging the deck chairs on the titanic whilst the band is playing “things can only get better” Perhaps we will see Rt Hon Rachel Reeves dance up to the podium with this ditty playing in the background on the 30th October! https://lnkd.in/eZxe8B6i

The Treasury is reconsidering plans to toughen up the abolition of non-domicile tax status, on account of concerns over how much money will be raised, should wealthy foreigners simply leave the UK. https://lnkd.in/eb_Y4_nq #HMTreasury #HMRC #Tax #NonDoms #NonDomicile #Labour #WealthTax #Budget2024 #InheritanceTax

🗞 The Labour Party is considering raising money through wealth taxes to invest in public services if they win the election. 🗞 An increase in CGT on assets like second homes and business shares is being discussed, potentially raising £8 billion. 🗞 One option is to change inheritance tax rules for agricultural land and business assets, which some wealthy individuals use to avoid taxes. 🗞 Labour might also consider changes to how inheritance tax applies to gifts. https://lnkd.in/dxnJ9BZq

🚨Bonus Article Alert!🚨 🌹Navigating Financial Changes Under the New Labour Government 💼   The recent victory of the Labour Party in the UK general election marks a significant shift in governance after 14 years. With promises to maintain tax rates and a commitment to address fiscal fairness, it's crucial for individuals and businesses to stay informed about the potential financial implications.   The Labour government's stance on National Insurance, VAT, and Income Tax remains unchanged, providing stability for working individuals. However, potential reforms in other areas like Stamp Duty and Capital Gains Tax could signal changes worth monitoring.   Read our latest article 'What A Labour Government Could Mean For Your Finances' to stay ahead of the curve and make informed decisions for your financial future. 📈   Don’t miss out on our weekly posts here on LinkedIn, where we share a selection of articles from our blog series. You can find all this month’s articles on our website, or if you want to receive our articles as soon as they’re published, subscribe to our monthly newsletter by sending an email to info@bespokeifa.co.uk. We’d love to hear your thoughts in the comments!   #LabourGovernment #FinancialPlanning #EconomicPolicy #UKPolitics #TaxReform #NewArticles #BespokeBlogSeries https://lnkd.in/ecfBySxa