‘Petrified’ non-doms poised to flee UK over Labour’s tax plans

[jafo]

I'm starting to wonder if they will begin taxing passport holders, too, the way the US is doing. If they do, I just simply won't renew since I have other options. Also, I will NEVER EVER step foot in the UK again. Family visits would be over. F*ck that!

 

[wellington]

I will NEVER EVER step foot in the UK again. Family visits would be over. F*ck that!

Thats usually a good thing, also since covid funerals are streamed so you don’t even need to fly to attend those now.

 

[jafo]

Thats usually a good thing, also since covid funerals are streamed so you don’t even need to fly to attend those now.

It's funny you just mentioned that. I've been attending them all via streamed services. Pre-P(l)andemic, I wasn't even aware of this industry, but since then, I've attended at least 16 (family, friends, acquaintances, buyers, and suppliers). Ironically, vaccinated people are suddenly dying, but what do I know?

This is one I attended two weeks ago.

Died suddenly! This man is younger than me. He was a pharmacist at a multinational. He was in much better physical condition than +95% of the population. He was super healthy! The only difference? He was jabbed and twice boosted to keep his job that he NO longer needed. The man acquired low eight figures when he sold his chain of pharmacies (only 9) to a multinational. He chose to continue working as a pharmacy manager so that he would not get bored at home.

So sad!

 

[Martin Everson]

Labour confirms removal of IHT trust protection in non-dom policy details​

https://international-adviser.com/l...t-trust-protection-in-non-dom-policy-details/
--- quote start

Under the proposals Labour plans to include all foreign assets held in a trust within the scope of UK IHT, whenever they were settled; and remove the 50 percent reduction in foreign income subject to UK tax in 2025/26 under the proposed transitional rules for those non-doms who are subject to UK tax on a worldwide basis from that date.

---- quote end


Ok so under a UK Labour government the party is completely over for UK non-doms. The conservative loophole with use of trusts by non-doms to avoid IHT will be closed .........RUN!!!!!

P.S I expect Rishi Sunak and his wife to leave the UK in the medium to long term if he leaves office. I bet she misses her non-dom status so far .

 

[Martin Everson]

‘I am moving – that is it’: tycoon speaks out about the end of non-dom tax status​

https://amp.theguardian.com/news/20...m-haidar-non-dom-tax-status-super-rich-exodus

 

[jafo]

‘I am moving – that is it’: tycoon speaks out about the end of non-dom tax status​

https://amp.theguardian.com/news/20...m-haidar-non-dom-tax-status-super-rich-exodus

They are fleeing the sinking ship, huh?

 

[Martin Everson]

The UK government likely got it wrong with the logic that these non-doms are settled in UK, have kids in school and love London so much they will ignore the......40% IHT and 45% income tax rate . Then here is a guy with 4 kids in school in UK telling you he is leaving the UK and making redundant his household staff of 20 people because of this tax change......lol.

-- quote start

He said he had formed a working group of 29 non-doms, who mostly planned to leave the UK before September so that they could secure places for their children in private schools in their new countries before the start of the academic year.
......
Haidar said he was sad to be leaving London, a city that he has called home for more than a decade, but said he had to leave to save his four children the risk of paying inheritance tax on his fortune.

--- quote end

 

[justlavra]

I didn't think that 'Beckham's law regime' was legal and that many of the prominent VIPs got huge tax bills because they thought it was legal and was a way to circumvent taxes? What is it that I don't understand now?

Why did you think thats it's illegal? To good to be true or unrealistic to get?

 

[JohnLocke]

I must say this surprises me quite a bit, and I'm thinking about what this means for the UK in the long run. They risk all those with these many millions disappearing, leaving the working class to keep the country afloat!

 

[Martin Everson]

They risk all those with these many millions disappearing, leaving the working class to keep the country afloat!

Exactly I think the UK government has not examined correctly the indirect taxes the wealthy generate in the UK. Each time they buy a high end property in generate a large amount of stamp duty and same with luxury goods, cars, art and services. They contribute to the many high end boutique businesses and restaurants etc in London that may not do so well if the wealthy disappear overnight. I think the government only looked at direct taxes these non-doms pay which does not give the full picture. Only time will tell indeed.

 

[jafo]

Exactly I think the UK government has not examined correctly the indirect taxes the wealthy generate in the UK. Each time they buy a high end property in generate a large amount of stamp duty and same with luxury goods, cars, art and services. They contribute to the many high end boutique businesses and restaurants etc in London that may not do so well if the wealthy disappear overnight. I think the government only looked at direct taxes these non-doms pay which does not give the full picture. Only time will tell indeed.

This is "normal" human nature (although I didn't want to believe this when it was first taught to me ).

(1) It doesn't add up

(2) Study shows half of people would accept a 50% lower salary to prevent colleagues earning more than them - Idea to Value

(3) One of the many research papers on this phenomenon: https://www.econstor.eu/bitstream/10419/98951/1/dp8215.pdf

Sadly, I have no answers for this despicable human behavior, nor do I know how to articulate it. I'm just painfully aware of the reality, but I can't make heads or tails from it.

cc. Maybe @JohnnyDoe has some thoughts on this.

 

[0xDEADBEEF]

Sadly, I have no answers for this despicable human behavior, nor do I know how to articulate it. I'm just painfully aware of the reality, but I can't make heads or tails from it.

If you're not wired like that, it's difficult to empathize. It's an aspect of human behavior rooted in social comparison and envy.

In psychological terms, this phenomenon can be understood through relative deprivation theory. This theory suggests that individuals measure their success not only by absolute standards but also relative to others. When people perceive a gap between themselves and those who have more, they experience feelings of injustice and resentment. This leads them to prioritize reducing this gap over their own (financial) well-being.

Additionally, social comparison theory explains that humans naturally compare themselves to others to assess their own status and worth. In competitive environment (monkeys in the corporate jungle) most individuals find it challenging to see colleagues earning significantly more than them.

Personally, it blows my mind that some people would rather earn 4k a month and be a high earner within the company than earn 10k a month and be below average in that same company. I guess for some morons, money really doesn't buy happiness.

 

[jafo]

(monkeys in the corporate jungle

This reminded me of the study of the Dutch professor Frans de Waal:

 

[alain]

Why did you think thats it's illegal? To good to be true or unrealistic to get?

yeah too good to be true. Smells like troubles from long distance.

 

[Martin Everson]

Rich flee UK in ‘panic mode’ to avoid 1,000% inheritance tax hike if Labour wins election​

https://www.express.co.uk/finance/p...onal-rich-wealthy-flee-UK-Keir-Starmer-Labour

Britain should celebrate the wealthy – not tax them out of the country​

https://www.msn.com/en-us/news/worl...y-not-tax-them-out-of-the-country/ar-BB1nIFnR

Non-doms preparing to leave UK over Labour's plans​

https://www.investorideas.com/news/2024/main/06053UK-Labour-Plan.asp

---- quote start

Among other proposals, Labour has indicated plans to reduce the generosity of transitional reliefs, specifically by removing the proposal that existing non-doms would only be taxed on 50% of their foreign income in the first year of the new system.

The most notable proposal is that trusts created by non-doms will no longer protect non-UK assets from inheritance tax, regardless of when they were established. It appears this rule would apply even to trusts set up before the settlor became a UK resident, though these trust assets might remain exempt until the settlor has been a UK tax resident for 10 years.

--- quote end

 

[JohnLocke]

The wealthy people living in the UK must really be scared! Does anyone know if it could actually get as bad as they expect?

 

[Martin Everson]

Does anyone know if it could actually get as bad as they expect?

We have to wait and see what things look like around end of 2025. I think that's when we will get data on how many rich non-doms left before April 2025 deadline.

 

[manukahoney]

Wait till they introduce wealth tax on the "rich".

 

[Martin Everson]

Wait till they introduce wealth tax on the "rich".

That's coming for sure in Labours second term if they win the election alongside an enhanced and aggressive personal exit tax to stop the rats fleeing the sinking ship. The money has to come from somewhere

 

[Don]

Well, it's official now.
https://www.bbc.com/news/live/cn09xn9je7ltLabour is in power.