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‘Petrified’ non-doms poised to flee UK over Labour’s tax plans
- Thread starter Martin Everson
- Start date
Meanwhile UK public have to pay IHT but King Charles paid NONE. And UK tax payers have to pay for him is cherry on top. Well I guess if you allow yourself to be a subject of the crown and live within his kingdom [United Kingdom] you only got yourself to blame for being taken for a ride.
https://www.npr.org/2022/09/15/1123151802/king-charles-iii-inheritance-tax
---- quote start
King Charles III has ascended to the U.K. throne, but he won't have to pay the U.K.'s inheritance tax on the massive wealth he inherits from his late mother, Queen Elizabeth II. That's because of a deal the royals made with the government nearly 30 years ago.
Regular citizens must pay the standard inheritance tax rate of 40% on any part of an estate that's valued above a threshold of 325,000 pounds (about $374,000). There are common exceptions, such as money left to a spouse or a charity.
But under an agreement with the monarchy that then-Prime Minister John Major announced in 1993, assets passing from a sovereign to their successor aren't subject to the inheritance tax.
---- quote end
Never mind being a non-dom if I lived in UK and had money I would move rather than be treated with contempt by the system that will tax your income then tax your wealth again at 40% after you pass.
King Charles III won't pay any inheritance tax on his massive gain
https://www.npr.org/2022/09/15/1123151802/king-charles-iii-inheritance-tax
---- quote start
King Charles III has ascended to the U.K. throne, but he won't have to pay the U.K.'s inheritance tax on the massive wealth he inherits from his late mother, Queen Elizabeth II. That's because of a deal the royals made with the government nearly 30 years ago.
Regular citizens must pay the standard inheritance tax rate of 40% on any part of an estate that's valued above a threshold of 325,000 pounds (about $374,000). There are common exceptions, such as money left to a spouse or a charity.
But under an agreement with the monarchy that then-Prime Minister John Major announced in 1993, assets passing from a sovereign to their successor aren't subject to the inheritance tax.
---- quote end
Never mind being a non-dom if I lived in UK and had money I would move rather than be treated with contempt by the system that will tax your income then tax your wealth again at 40% after you pass.
No way this can be real!
This is just to mess with people's heads, right? Right?
Labour’s non-dom crackdown would be ‘impossible to police’
https://www.yahoo.com/news/labour-non-dom-inheritance-tax-155218622.html
--- quote start
“We are committed to addressing unfairness in the tax system so we can raise the revenue to rebuild our public services. That is why we are removing the outdated non-dom tax regime and replacing it with a new internationally competitive residence-based regime focused on attracting the best talent and investment to the UK.”
--- quote end
Biggest joke I have heard in a while. UK and competitive tax regime for the wealthy?....lol.
I too cannot see how they can track a persons assets 10 years after they have left the UK and cut all ties.
Maybe they want us all to register our Chickens: You must register if you keep poultry or other captive birds in England or Wales. This includes any birds you keep as pets. If you became a keeper of poultry or other captive birds before 1 October 2024, you must register immediately if you have not done so already. If you become a keeper of poultry or other captive birds after 1 October 2024, you must register within 30 days of becoming a keeper. You’re breaking the law if you do not register.
PS. My cousins in the UK sent me this...I really thought they were pulling my leg!
Are there any statistics that show how many millionaires and billionaires have "fled" from England to countries with better tax rates?https://www.theguardian.com/politics/2024/apr/13/uk-non-doms-uk-labour-tax-plans
--- quote start
People are jumping on planes right now and leaving,” said Nimesh Shah, the chief executive of Blick Rothenberg, an accountancy firm that specialises in advising very rich “non-doms” on their tax affairs. “I am not being dramatic, they are leaving right now.”
.
.
.
Miles Dean, a partner and head of international tax at the tax advisory firm Andersen, said his advice to clients was simple: “If you can leave within six months, make plans to leave now. The UK is no longer safe as a tax environment.”
Some of his clients, however, are not prepared to wait that long. “I spoke to two clients yesterday: one elder chap who is moving to Dubai, and another 40-year-old entrepreneur who sold a business a few years back and who is moving next month to Spain under the Beckham’s law regime,” he said.
--- quote end
You can't make it up. There is no way non-dom millionaires and billionaires are gonna pay UK high taxes when there are more attractive places to live and with better weather...lol. Screw putting your money in an offshore trust as Labour will close that loophole plus UK already has extensive rules preventing offshore trusts being used for tax avoidance....why take the risk?
No because the UK generally doesn’t record wealth of non residents as they have no right to know it.
As for onshore you’d base it on prior tax returns and guessing based on NonDoms leaving
Note being a non dom doesn’t make you a millionaire so even that approach is flawed
I don’t give the place a second thought - having said that I left shortly almost half my life ago
No way of really telling. We can only wait until after April 2025 when ONS produce figures similar to the below for number of non-doms. Also HMRC maybe able to at best see if there is any reduction in number of very high income individual tax payers [for domestic billionaires an millionaires] but that will be a very laggy indicator at best.
https://www.gov.uk/government/stati...ntary-on-non-domiciled-taxpayers-in-the-uk--2
I would second this. I saw the London of 1983. Wonderful place. Last year I had to occasion to return for business and saw the London of 2023. Even at that point as a tourist from the rebellious colony, it made me very sad to see what has happened to what was once one of the world's finest cities.
It was the kiss of death from the EU that ruined the UK.
We can afford to live in the UK but not to die here - non-doms fear IHT raid as Italy says: 'move here'
https://www.thisismoney.co.uk/money...ent-non-doms-afford-live-UK-not-die-here.html---- quote start
A flat-rate lump sum levy that falls due each year could be the solution to the mounting challenges facing Chancellor Rachel Reeves in her Autumn Budget plan to squeeze more tax from ‘non-doms’.
These are people whose permanent home is out of the UK for tax purposes and so enjoy certain tax privileges.
A similar scheme in Italy – led by premier Giorgia Meloni – is luring non-doms from the UK and elsewhere who are willing to pay reasonable sums in tax, but unwilling to be penalised.
In an embarrassment to the Government, research from the Oxford Economics consultancy reveals that the Reeves crackdown would not raise the hoped-for £2.6billion but would result in a £900million loss of revenues.
Non-doms are wealth-creators, starting businesses, supporting employment and spending freely on expensive goods and services. But up to a third could quit Britain, according to Oxford Economics.
---- quote end
This is sensible solution to a pending exodus of non-doms
UK faces 'biggest exodus of millionaires in the world' ahead of planned raid on non-doms, research claims
https://www.msn.com/en-gb/money/oth...-raid-on-non-doms-research-claims/ar-AA1rTkyf
Record number of millionaires to leave UK as top academics join calls for exit tax
https://www.msn.com/en-us/money/mar...academics-join-calls-for-exit-tax/ar-AA1rRJ7V
Not only,.. seems like it keeps on getting "better"
UK's Reeves is considering raising capital gains tax to 39%, Guardian says:
https://uk.marketscreener.com/news/...pital-gains-tax-to-39-Guardian-says-48044658/
"Capital gains tax raises around 15 billion pounds a year - less than 2% of total tax revenue - and is only paid by 0.65% of British adults, according to the IFS."
What a great tax friendly environment to start and grow a business. This will inspire entrepreneurs to take the risk in building up a UK business to lose 39% via CGT when it comes to selling it. Trust me the Spanification [become like Spain] of the UK economy is coming unless they reverse course. Hopefully none of this happens
I would just personally leave the UK. You can always come back in the future. And coming back to UK as a UK citizen may be far easier than trying to leave in the future if they introduce personal exit taxation etc.
P.S People talking about how attractive it is to live in UK is like people talking about the great brexit benefits. It's all in their mind.....lol.
What a great tax friendly environment to start and grow a business. This will inspire entrepreneurs to take the risk in building up a UK business to lose 39% via CGT when it comes to selling it. Trust me the Spanification [become like Spain] of the UK economy is coming unless they reverse course. Hopefully none of this happens
I would just personally leave the UK. You can always come back in the future. And coming back to UK as a UK citizen may be far easier than trying to leave in the future if they introduce personal exit taxation etc.
P.S People talking about how attractive it is to live in UK is like people talking about the great brexit benefits. It's all in their mind.....lol.
UBS recently released its wealth report of this year and this is their estimate on millionaire population growth
And also for those who have a significant capital gain (200%+) since like a decade ago.
Damn though imagine a decade of growth just to be taxed on all of that at 39%...
What I find surprising about this report is that Canada has an exit tax that can go up to 35.7% (CGT is now 2/3 of Income tax from previous 1/2) and yet they forecast a 21% increase.
We should write ourselves a note to come back here in 2029 and see if UBS' forecast holds ANY water. I'm betting my scr0tvm they are so wrong it's scary!
If UBS knew a forecast with certainty, they would NOT share it with any of us—or even with each other!
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