Re: Economic Trade-offs for the next government
Posted: February 29th, 2024, 1:39 pm
Nimrod103 wrote:spasmodicus wrote:Jeremy's revenge? The Beeb reported recently that Jeremy Hunt is thinking, at the last minute, about tinkering with / abolishing non-dom tax breaks, to pay for tax cuts for the rest of us*** in the budget. This cunning wheeze would have the effect of taking away some of the money that Labour, assuming they win the election, would use to finance their spending program, leaving the cupboard bare, as it was after the 2008 financial crisis.
Abolishing non-dom tax would allegedly raise £3.2 billion. That's about 60 quid each for the UK population, but this assumes that said non-doms would stay put in the UK if they had to cough up tax on their foreign earnings.
*** assuming you lot out there are not non-doms. If you are, come on, own up, would you leave?
According to the Telegraph the number of non-doms had dropped from 85,000 in 2015 to 55,000 in 2022, and probably has continued to drop since 2022. Since Hunt is facing certain ejection in November, he should tax the non-doms and use the money to reduce income tax. Then when Labour come in, and they have to jack up income tax, everyone will notice.
Yep, it is a cunning plan. And at the same time maybe abolish the entire concept of domicile so that non-dom spouses get the same IHT deal as other spouses?