Rachel Reeves has given in to the rich over non-dom tax changes – shame on her – because she is afraid they will leave the country, taking their money with them.
She is wrong, of course. Rich people generally sink their money into assets in order to get richer – and those are usually the kind of thing that can’t be moved.
All she would have to do if these people went anywhere else is tax them on their income from the assets they could not take with them.
But she clearly hasn’t thought of that.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
The change to non-dom taxation is part of a transitional arrangement from the current situation in which non-doms avoid paying tax on overseas earnings for up to 15 years in exchange for fees, to a shorter residence-based regime.
As originally announced by Conservative chancellor Jeremy Hunt, non-doms will be able to bring some overseas income into the UK and pay a reduced tax rate of 12-15 per cent.
But rich non-doms complained and it seems the Treasury will tweak the rules to include all types of investment.
The intention had been to close loopholes in Inheritance Tax that were benefiting the rich, but it seems that idea is being scrapped. That being said, This Writer could be mistaken; the change is not very well-described at all.
Will it stop non-doms leaving – as it is claimed they are doing – and encourage them to invest in businesses and assets here in the UK?
Who knows?
To This Writer, it looks like just another case of the rich non-dom tail wagging the UK Treasury dog.
Source: Rachel Reeves to soften non-dom tax changes to woo rich for growth push | Rachel Reeves | The Guardian
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Reeves has given in to the rich over non-dom tax changes – shame on her
Rachel Reeves has given in to the rich over non-dom tax changes – shame on her – because she is afraid they will leave the country, taking their money with them.
She is wrong, of course. Rich people generally sink their money into assets in order to get richer – and those are usually the kind of thing that can’t be moved.
All she would have to do if these people went anywhere else is tax them on their income from the assets they could not take with them.
But she clearly hasn’t thought of that.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
The change to non-dom taxation is part of a transitional arrangement from the current situation in which non-doms avoid paying tax on overseas earnings for up to 15 years in exchange for fees, to a shorter residence-based regime.
As originally announced by Conservative chancellor Jeremy Hunt, non-doms will be able to bring some overseas income into the UK and pay a reduced tax rate of 12-15 per cent.
But rich non-doms complained and it seems the Treasury will tweak the rules to include all types of investment.
The intention had been to close loopholes in Inheritance Tax that were benefiting the rich, but it seems that idea is being scrapped. That being said, This Writer could be mistaken; the change is not very well-described at all.
Will it stop non-doms leaving – as it is claimed they are doing – and encourage them to invest in businesses and assets here in the UK?
Who knows?
To This Writer, it looks like just another case of the rich non-dom tail wagging the UK Treasury dog.
Source: Rachel Reeves to soften non-dom tax changes to woo rich for growth push | Rachel Reeves | The Guardian
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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