“The Chancellor has today distanced herself from implementing a wealth tax in the UK at her upcoming budget on 26 November recognising the practical difficulties implementing one would bring.
“While this should bring some comfort and relief to wealthy UK resident individuals, with latest estimates suggesting the government will have to fill a £30bn black hole, it does leave the Chancellor frantically looking at existing taxes to raise revenue should the government wish to meet its fiscal rules. This firmly puts inheritance taxes and capital taxes in the frame for increased attention.
“All this speculation and uncertainty comes at a time when the UK has witnessed a significant flight of wealth following the scrapping of the non-dom regime and the removal of the inheritance tax (IHT) protections on foreign assets at last year’s Autumn Budget. Meanwhile, the global wealth community continues to grow and is more internationally mobile than ever and various jurisdictions are locked in an arms race to attract and retain this wealth.”
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