Ridgefield Consulting - Oxford Accountants’ Post

Interesting argument on why dropping the corporate tax rate could benefit America. Even if we didn't lower the corporate tax rate for domestic profits, if we lower the tax rate for international profits to match Ireland's 15%, it could bring us in another $38 billion of annual tax revenue. #taxplanning #deficit #financialplanning

UK should have an ‘exit tax’ like Australia and Canada, argues new report from Centre for the Analysis of Taxation published this week with support from abrdn Financial Fairness Trust. The report finds that 'The UK has historically not had an exit tax for Capital Gains Tax (CGT) because it would have been rendered ineffective by EU free movement rules (and this still hampers the exit taxes imposed by France and Germany). Now that the UK has left the EU, there is no obstacle to implementing an effective exit tax if the Government wishes.' 🌍 Andy Summers, Director of CenTax and Associate Professor at LSE, said: “Charging CGT on people who leave the UK is not about punishing them for leaving. It’s simply saying: ‘you need to pay your bill on the way out’. Most of the UK’s international peers already do this, and there is no reason why the UK couldn’t as well”. 👉 Read the full report here: https://lnkd.in/eUdKZQS5

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.

IPPR: Tax reform could ease regional inequalities  Labour is being urged to implement an £18bn tax reform aimed at addressing wealth inequality as Chancellor Rachel Reeves prepares for her first Budget. The Institute for Public Policy Research (IPPR) suggests that the current tax system's bias towards wealth is "one of the most significant barriers to levelling up that we face." IPPR analysis shows that around 40% of investment income in the UK is generated in London and the South East, despite those areas being home to a just quarter of the UK's population. The IPPR's report suggests equalising capital gains tax with income tax to raise £68bn before the next general election in 2029. It also recommends a unified tax schedule for all income types and reforms to property tax, including replacing council tax with a proportional property tax. 

Rt Hon Rachel Reeves said in the House of Commons yesterday that the government will not “be coming back with more tax increases or more borrowing” before the end of this current parliament. That is a relief following the £40 billion tax raising budget announced last week. Businesses in the UK need to keep focused on economic growth while balancing the impact of taxation increases announced in the Budget last week.     Let’s all get on with the job. Let's focus on business growth with the variables that we can control.  Let's connect and aim for a positive economic effect. #businessstrategy #businessgrowth #growthstrategy #futurefocus #growthmatters https://lnkd.in/exyx-KUT

“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.”

And the winners could be Switzerland, Monaco, Italy, Greece, Malta, Dubai or the Caribbean. The new British government wants to put an end to the status of non-domiciled taxpayers in April 2025. At the risk of seeing wealthy individuals leave the country. Even if no one likes to pay more tax, this does not mean that rich foreign residents will flee the UK in droves. Nonetheless, abolishing "non-dom" status will be the biggest change to UK personal tax in 200 years. https://lnkd.in/eH5FwJ9S

Echoes of Denis Healey’s squeaking pips in the upcoming Budget, forcing an exodus of some of our most talented, successful entrepreneurs. And the irony is, almost 70% of these “leavers” will be rejoining the European Union. The money Rachel Reeves “saves” will be spent on “rebuilding public services” not wealth creation. More of this revenue is being raised from taxes on company profits and capital taxes. By 2028–29, revenue from capital taxes will have almost doubled since 2010–11, largely reflecting asset price inflation. According to the Institute For Fiscal Studies “total UK tax revenue as a share of national income has increased sharply since 2019–20 and is forecast to reach 37.1% by 2028–29 – within a whisker of its 1948 early post war high of 37.2%. Hardly the climate for stimulating private sector led economic growth.

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

🚨The UK Chancellor’s decision to soften the Government’s stance on non-dom tax reforms is a welcome signal, but the substance leaves much to be desired. The primary measure under consideration—extending the temporary repatriation facility to allow taxpayers to remit historic income and gains to the UK at a discounted rate for three years—may offer some short-term appeal. However, the details remain vague, and for many non-doms who have already prepared for the 6 April 2025 deadline, this initiative risks being too little, too late. The broader challenge lies in the UK’s tax framework, which continues to deter long-term residence. The prospect of a 40% inheritance tax on worldwide estates after ten years has become a critical tipping point, prompting many to simply leave the UK rather than remain subject to such liabilities. With global mobility enabling individuals to easily shift their residence and investments, the UK risks losing its attractiveness to internationally wealthy individuals. 📈 To compete effectively, the UK must move beyond piecemeal adjustments and adopt a coherent, pro-growth personal tax regime. Predictability and competitiveness are essential to retaining global talent and capital, but current proposals fall far short of achieving this goal. #UK #Nondoms #Competition