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Very rich Britons are leaving Britain tax havens They have to pay a fee at the time of departure under the schemes already being prepared of this month Shortage Budget,
chancellor Rachel Reeves She is reportedly considering imposing a 20 per cent “settlement charge” on commercial properties let in the UK as she tries to do so. Fill the hole worth billions of pounds in the country’s finances,
But shadow justice secretary Robert Jenrick attacked what he said was a “crazy” idea that would “just look at the money”. Wealth creators rushing to the door…We need more entrepreneurs, not less! Reeves should refuse this latest desperate move.
Economists have repeatedly warned Ms. Reeves that’s a combination Labor U turn, more borrowing And sluggish economic growth means it will have to raise taxes or break its key borrowing rules in the budget,
And Ms Reeves herself has said that higher taxes on the rich will be part of her long-awaited storyline Budget later this month.
It is thought the move would raise around £2bn and bring the UK in line with most other G7 countries, all of which – apart from Italy – already have their own “exit taxes”.
Currently those who are emigrating can sell their British property without paying capital gains tax (CGT), which is generally charged at 20 per cent.
But under new proposals this will change and they will have to pay an ‘exit charge’ when departing the UK, although there will be an option to delay for several years. Times,
It comes as economists warn Ms Reeves is set to raise taxes faster than any chancellor in more than half a century. Capital Economics said it could increase the levy by up to £38 billion in this month’s crisis budget, up from the £41.5 billion raised last year. This would mean that he has raised taxes more in just 17 months than any of his predecessors in the entire Parliament since 1976.
The focus on the rich comes after claims that 16,500 millionaires will leave Britain this year due to tax changes and a lack of confidence in the faltering economy.
The Henley Private Wealth Migration Report estimates that Britain will lose twice as much wealth as China and ten times as much as Russia.
James Smith, research director at the Resolution Foundation think tank, said the Treasury had a “precedent” to follow in creating the settlement tax, but he warned the move would have to be “urgent”.
“The idea would be that if someone decides to leave the country and move to a lower-tax jurisdiction, they will have to pay tax on any property ‘gains’ such as shareholdings that remain in the UK.
“This will be different from the situation at the time where for example, if someone relocated to a place like Dubai, he could sell his UK assets after leaving the country and would not be liable to the UK. capital gains tax,
“The risk is that if you announce it and don’t bring it in immediately it could lead to capital flight.”
Professor Andy Summers of the Center for Analysis of Taxation, who proposed the policy, said it was largely made possible by Brexit.
“In the past… the ability to impose settlement fees was restricted by EU rules on freedom of movement,” he said. “But those rules no longer apply, so we can do what Australia and Canada already do – along with most other European countries – now that those restrictions have been relaxed.”
The Treasury declined to comment.