[Politics] The Labour Government

[nevergoagain]

Just want to say I'm a huge fan of the increasing insinuation from some that a chancellor who worked at the Bank of England doesn't really understand how money works as well as they claim to do

I also have worked at BoE and there are an awful lot of people there just for the name on the CV and are actually rubbish at their jobs. Mark Carney was a top top bloke though.

 

[Weststander]

In 2022 the LSE said scraping the tax benefits of non dom status would raise £3.2b a year.

Earlier this year all estimates said a much reduced £1b, including from the OBR.

Before the Adam Smith Institute report, a recent insight said it would cost tax.

These invariably aren’t tax dodging Brits. 93% were born abroad, they came to the UK from the US, India and mainland Europe. They’re mobile, without a lifetime’s attachment to this country. They have been leaving the UK following adverse tax charges, there were 140,000 in 2007/08, now 74,000. The 74,000 pay £8.9b per annum in UK taxes.

To recap on the technical nature of a non-Doms tax affairs. They don’t pay tax on overseas income or gains when not then remitted to the UK, instead a flat rate £30k or £60k annual charge. So for example an American or Indian non-dom living in London doesn’t pay tax on dividends received in their native country, when not then brought into the UK. That’s it.

Italy and the UAE are making a concerted effort to lure the non-doms, it’s working.

The feeling is that Reeves is watering down any proposals. If true, she’s looked and listened.

 

[Weststander]

The rich are an interesting subject.. As I have said so easy in opposition for genuine and vote reasons to say will go for rich including non doms but when in government realise how much these people contribute. An example I read at present non doms at present time contribute over £6b
Our top PL players pay 45% and would be interesting what the top rate is in Spain Italy and Germany

Overseas players in Spain pay half that rate.

 

[chip]

Not if was tax-free interest added to the savings.

Not if it's ISAs - they're all tax-free.

And the £1k only applies to people with other income of £17.5k. If you have no other income, then I think you can earn savings interest up to the normal tax threshold (£12,570), plus the personal savings allowance.

Edit - no, if your 'other income' is nil, it looks like your £1k PSA is upped to £5k.

Yes, of course. I wonder why it would be that it's increased if you have no other income. There must be a reason for that, what could it be?

 

[drew]

In 2022 the LSE said scraping the tax benefits of non dom status would raise £3.2b a year.

Earlier this year all estimates said a much reduced £1b, including from the OBR.

Before the Adam Smith Institute report, a recent insight said it would cost tax.

These invariably aren’t tax dodging Brits. 93% were born abroad, they came to the UK from the US, India and mainland Europe. They’re mobile, without a lifetime’s attachment to this country. They have been leaving the UK following adverse tax charges, there were 140,000 in 2007/08, now 74,000. The 74,000 pay £8.9b per annum in UK taxes.

To recap on the technical nature of a non-Doms tax affairs. They don’t pay tax on overseas income or gains when not then remitted to the UK, instead a flat rate £30k or £60k annual charge. So for example an American or Indian non-dom living in London doesn’t pay tax on dividends received in their native country, when not then brought into the UK. That’s it.

Italy and the UAE are making a concerted effort to lure the non-doms, it’s working.

The feeling is that Reeves is watering down any proposals. If true, she’s looked and listened.

Wouldn't the centre right Adam Smith Institute not say anything else!

 

[Weststander]

Wouldn't the centre right Adam Smith Institute not say anything else!

That’s why I ignored their thoughts. Instead using HMRC, Full Fact, LSE and CIOT sauces.

 

[Pavilionaire]

Personal savings allowance is £1000 for basic rate.

It would take a lot of savings to get that much interest from ISAs, ~25 years.

In a way this misses the point, it is interest not income in this example. If you have £20K savings you might get £1K interest, at what point does this become income? I imagine most of us get an income (interest) under this definition.

There is a £12,570 Personal Allowance, a £1,000 Savings Allowance AND a Starting Rate of £5,000 @ 0% on interest for those with no other income, such as employment.

Someone aged 60 who was left £400K capital by a dead parent could receive £18,570 interest and not pay a penny in tax.

I've just done a Tax Return for a bloke who had £22 K interest, £47 K dividends and who still got the £5K Starting Rate @ 0%.

 

[Machiavelli]

He's not running the show but he's obviously fu**ing mental, looking at his bio

View attachment 191072

The wonders we have in our great nation, and you can count on @Is it PotG? to find them out.

 

[Machiavelli]

I’m not sure it is simplistic bolleaux. There have been quite a few reports of increasing numbers of very wealthy planning to do just that, however, I have no idea whether or not they actually will. Let me put it slightly differently, there are fears amongst some, that the very wealthy who are often in a position to arrange their affairs to mitigate against government action to get more tax from them, will legitimately do so, whilst the ‘ neither rich nor poor Joes in the middle’ will get clobbered. There are more of them and they are easier targets. You may not agree, but I think it is a reasonable view to take. I believe the leaders of the country’s most powerful union, the BMA are already making noises/threats about doctors quitting or retiring early if there are changes to their pension arrangements, so there may be trouble ahead with the militant medics and I don’t suppose Wes Streeting would look forward to that.
Finally, re your remark on checking every single line of dear Rachel’s budget, you can be sure the lawyers, advisers and accountants of the very wealthy will be doing just that for them. The ‘neither rich nor poor Joes in the middle ‘ may not be so fortunate.
Anyway, let us hope it all goes swimmingly well and those of us with misgivings about our leaders are worrying about nothing.

Excellent. Let's leave it up to the 'very wealthy' to run our affairs. I'm sure it'll turn out well.