Actual title has substantially different import.
Is there any evidence for this fine theory that you constructed in your head?
They almost certainly are. Even if you assume they didn't earn any UK income, they were still paying VAT.
I also find it very difficult to be sympathetic to folks who feel that their large amount of money earns them the right to minimize the payment of taxes in the country they live. It just seems a little selfish to me. Sorry about that.
It would probably have been a better idea to require periodic investments into UK businesses to increase the tax take rather than scrap it altogether. Thats said the UK requires a wider culture shift when it comes to money so it wouldn't have made much of a difference.
I do agree that maybe there is a more nuanced approach to this which would encourage investment into UK businesses, but nobody ever said politicians were the brightest people on the planet. :)
The problem here is the way they are implementing it, right now you would still pay taxes on brining money to UK, also all of those people who happily pay certain amounts or smaller percentages on % of foreign income to live in the UK. However 45% of income made completely outside of the country is a robber and people are leaving to UAE, Italy, Switzerland. Italy is charging 200k flat now a yearn UK they would pay more. Also office of companies are getting relocated, they stop spending money here, they would pay higher to stay in UK.
So if you say you were to get 300-500k per year from those people and now you get 0, and thousands of people leaving it goes to billions in budget loss
Maybe it's fine that people go to UAE Italy and Switzerland, because it's difficult to ascribe any solution when the participants are so secretive in their financial movements.
It's kind of interesting that people are becoming exercised by this tax, because it's clear that they don't really value staying in the UK as much as saving some money. I find that a really interesting observation.
It also means the tax difference of them leaving is near zero surely?
They were still paying taxes on any UK income.
> It also means the tax difference of them leaving is near zero surely?
Only if you assume they didn't pay any VAT.
Now we just need to deal with all the overseas territories and their tax arrangements. Do those count as "in the UK"? I believe not. But they benefit from the UK defense umbrella.
This was great for people who just want to come to the UK to work say in finance for a few years but don't want to move their inheritance regime or finances from other countries. It was much fairer than most people make it out to be since most other countries dropped the double taxation agreement if you opted for this, therefore you would also pay tax in your origin country.
Here's a list of prominent ones.
https://en.wikipedia.org/wiki/List_of_people_with_non-domici...
A Conservative MP who "inherited" the status.
A son of a British newspaper magnate that got it because his dad became a tax exile to France.
Hereditary peers in the House of Lords who were claiming to live abroad and so on
And many of the "other countries" in these cases are in fact tax havens like Monaco or Belize.
It's all PR, entrenched interests.
colesantiago•6mo ago