McDonnell to Hike Tax On 1.7 Million Job Creators

This morning on the Today Programme, John McDonnell reiterated Labour’s ambition to hike the tax on those earning over £70,000 this morning, in an attempt to squeeze at least £6.4 billion out of them. What they haven’t accounted for is the change in behaviour that such a tax on the more successful would cause…

Hiking tax on the most mobile earners does not make economic sense. Currently, despite Brexit, the UK is extending its lead as Europe’s ‘tech unicorn’ capital, and last year more venture capital for tech came to London than the whole of France, Spain, Ireland and Germany combined. Labour’s anti-success policy would end the UK’s status as a good place to bring your business.

This policy could be even more damaging and unproductive than former French President Francois Hollande’s ‘megatax’ on the rich, the now reversed hike saw French competitiveness fall and professional emigration rise, making London the sixth largest French city in the world. Brexit isn’t causing an exodus of the job creators, but there’s no doubt that a Labour government would…

October 25, 2018 at 10:07 am
Comments

Labour’s Tax Expert Admits Error

jolyon

This morning on the Today Programme Ed Balls namechecked the blog of Jolyon Maugham a tax specialist QC, he estimated that Labour’s change to the non-dom tax rules would bring in an extra billion. Ed Balls referred to him again later as a “tax expert”:

Just now in the Q & A after his speech Ed Miliband also referred to Jolyon Maugham as an “independent expert” – he’s actually a Labour Party stalwart.

Well other independent experts have taken him to task on Twitter for a basic error, most countries have double taxation treaties (DTCs). If you pay tax in one country on your earnings, you can’t be taxed again in another jurisdiction – the UK has over 100 such treaties. On Twitter Jolyon has conceded “I accept DTCs could have some impact. There’s plainly some uncertainty about the numbers.” When you take this into account the net tax take will be nowhere near the billion claimed…

April 8, 2015 at 11:11 am
Comments

10 Reasons to Re-Non-Domicile in Ireland if Red Ed Wins in May

Non-doms, hedge fund managers, entrepreneurs and investors are still welcome in Ireland:

  1. Only income from Irish sources is taxable in Ireland.
  2. Income from UK or foreign sources is only taxable to the extent of amounts remitted (brought into) Ireland.
  3. Remittances of capital are not subject to Irish income tax – income earned at a time when the individual was not resident in Ireland would be treated as capital in nature and therefore not subject to income tax here when brought (remitted) to Ireland. This means that while such individuals will be chargeable to tax in Ireland on Irish source income and gains, they will only be chargeable on foreign income and gains to the extent that they are remitted to Ireland.
  4. Where non-domiciled individuals come to Ireland and use their wealth accumulated outside of Ireland to cover their day to day living expenses, it is possible for such individuals to live in Ireland free of tax.
  5. Individuals tax resident or ordinarily tax resident but not domiciled in Ireland are liable to Capital Gains Tax on gains arising on the disposal of assets situated in Ireland and the United Kingdom, and on all foreign gains to the extent that those gains are remitted to Ireland.
  6. Prime property in Dublin as well as estates in the country are still below their bubble highs – though Dublin is rebounding fast. Beachfront properties or houses with stabling facilities are plentiful.
  7. Ireland has world beating sporting teams, fantastic golf courses, the fishing is spectacular, hunting is legal, the sailing is great and the country is the world leader in equestrian sports.
  8. Ireland’s regional airports are an hour away from London City Airport in your Lear  jet.
  9. Ireland has a world class educational system and universities, technology start-ups are springing up everywhere, foreign tech firms like Twitter base their European headquarters in Ireland because the young well-educated English-speaking workforce has the talent they need.   The International Financial Services Centre ‘IFSC’ in Dublin welcomes hedge funds with financial incentives to relocate and is second only to London for the number of fund managers. The Heritage Foundation ranks Ireland the freest economy in the euro-zone.
  10. There is broad cross-party support for Ireland remaining a low tax, business friendly country welcoming to foreign investors. Corporation tax is 12.5%, inward investment incentives with tax breaks for entrepreneurs are generous.

If Red Ed does get elected on May 7 and the socialist terror comes to Britain, Ireland will welcome the huddled elite, yearning to breathe free…

April 8, 2015 at 9:08 am
Comments

Seen Elsewhere