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.
Why anyone would want to live in a country where successive governments flip flop with tax policy without doing any sensible impact assessments is beyond me at this point.
I don't even make a lot of money and I'm sick of it.
Even if it is watered down we still have the spectre of aligning CGT with income tax plus everything else.
I think people are focusing too much at one policy at a time, all the hype added together? I'm not sure you could model it accurately.
International Tax Barrister based in the Temple, London. Specializing in international legal & tax dispute resolution across the UK, EU, and Middle East.
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?
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
International Tax Barrister based in the Temple, London. Specializing in international legal & tax dispute resolution across the UK, EU, and Middle East.
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.
International Tax Barrister based in the Temple, London. Specializing in international legal & tax dispute resolution across the UK, EU, and Middle East.
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?
🚨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#BespokeBlogSerieshttps://lnkd.in/ecfBySxa
🚨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#BespokeBlogSerieshttps://lnkd.in/ecfBySxa
Thank you Alina Khan for letting me air the view of actual HNW UK Taxpayers. Unfortunately many pundits claim that they would never leave the UK, without ever speaking with the taxpayers themselves. Such an approach is simply projecting their hopes and desires for a particular political or academic outcome.
As others have pointed out, tax is not the ONLY consideration. However to think that it is not part of the decision equation is disingenuous.
In advising clients, I always tell them that they need to:
a) Weigh "Life Inertia" against the push factors such as tax, crime, political climate etc.; and
b) The availability of a jurisdiction(s) that will meet all the family members needs (ie. can be sold at the breakfast table)
Furthermore in looking into the future regarding tax policy I also advise clients to prepare for the worst, while hoping (and lobbying) for the best.
#ukbudget#nondom#remittancebasis#iht#capitalgainstax#exittaxhttps://lnkd.in/dk_WR7yR
🚨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#BespokeBlogSerieshttps://lnkd.in/ecfBySxa
Labour won a landslide victory in the general election on 4 July 2024 and Rachel Reeves made her first speech as the incoming Chancellor of the Exchequer on 8 July 2024, promising a ‘new approach to growth’.
Below are some of the main pledges from the manifesto and the Chancellor’s speech which impact tax and business:
▪ Britain is a place to do business
▪ Labour will not increase taxes on working people
▪ Non-domiciles
▪ Tackling the tax gap
▪ Reforming the planning system
▪ Employment and skills
▪ VAT on private school fees
▪ Energy Profits Levy
▪ When can we expect a Budget?
To find out more read the full article here ⬇️
https://lnkd.in/ev6z3mUy#generalelection#manifesto#chancellorspeech#tax#business
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
Chartered Tax Adviser - Individuals, Trusts and Estates
6moWhy anyone would want to live in a country where successive governments flip flop with tax policy without doing any sensible impact assessments is beyond me at this point. I don't even make a lot of money and I'm sick of it. Even if it is watered down we still have the spectre of aligning CGT with income tax plus everything else. I think people are focusing too much at one policy at a time, all the hype added together? I'm not sure you could model it accurately.