Analysis suggests wealthiest would save millions and Sunak’s own family could benefit to tune of £250m
Conservative plans to abolish non-dom status are riddled with loopholes worth hundreds of millions of pounds for the wealthiest people in the country, Labour has claimed.
Analysis by the party found that the policy, announced by Jeremy Hunt in this month’s budget, could theoretically see Rishi Sunak’s family benefit from tax savings of nearly £250m.
Continue reading...PM appears to rule out spring election after recent speculation it could be held in May
Starmer says being in opposition is frustrating, and he accuses the Tories of treating it as performance art.
He is now on the passage about his career in public service that was posted earlier. See 9.12am.
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Continue reading...The chancellor’s potential inheritance tax cut in Wednesday’s budget would aid millionaires amid a cost of living crisis
Jeremy Hunt faces a backlash from “red wall” Tory MPs if he uses a fiscal windfall of up to £20bn to deliver tax cuts for the rich rather than to help ordinary families with the cost of living, the Observer has been told.
The chancellor and Rishi Sunak are this weekend finalising an autumn statement on Wednesday that could include a major reduction in inheritance tax – four-fifths of which would benefit those with more than £1m at their death, according to a new report from the Institute for Fiscal Studies (IFS). Each person with more than £1m would receive an average tax cut of £180,000, the IFS states.
Continue reading...Thinktank carried out analysis as calls mount among Tory MPs for the tax to be abolished
Scrapping inheritance tax would cost the government almost £15bn a year in lost revenue by 2032, according to analysis by the Institute for Fiscal Studies that follows calls from Tory MPs for the main tax on inherited wealth to be abolished.
The thinktank said the latest figures from HMRC showed fewer than 4% of estates paid inheritance tax (IHT) in 2020–21, but the rapid growth in wealth among older individuals meant this number was set to rise to more than 7% over the next decade.
Continue reading...Shadow chancellor says decision to axe lifetime allowance is ‘wrong priority at the wrong time for the wrong people’
The Labour party has vowed to reverse the chancellor’s £1bn budget pensions tax “gilded giveaway” for the wealthiest 1% if it wins the next general election, as Jeremy Hunt defended his decision to scrap the lifetime pensions allowance.
The shadow chancellor, Rachel Reeves, said Labour would seek to force a Commons vote next week on the decision, which critics argue will allow the wealthiest people to put a limitless amount into their pension pots, which can then be passed on to their heirs without paying inheritance tax.
Continue reading...Chancellor obfuscated while imposing steep tax rises on ordinary Britons, says shadow minister
Rishi Sunak and his family potentially avoided paying tens of millions of pounds in taxes through his wife’s “non-dom” status while the chancellor imposed tax rises on the public, Labour has said.
The chancellor’s wife, Akshata Murty, gave in to mounting pressure on Friday, announcing she would pay UK taxes as Sunak’s position began to appear increasingly tenuous.
Continue reading...Wealthy see potential taxes imposed by Jeremy Corbyn as bigger threat than Brexit
The super-rich are preparing to immediately leave the UK if Jeremy Corbyn becomes prime minister, fearing they will lose billions of pounds if the Labour leader does “go after” the wealthy elite with new taxes, possible capital controls and a clampdown on private schools.
Lawyers and accountants for the UK’s richest families said they had been deluged with calls from millionaire and billionaire clients asking for help and advice on moving countries, shifting their fortunes offshore and making early gifts to their children to avoid the Labour leader’s threat to tax all inheritances above £125,000.
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