LABOUR’S CARRIED INTEREST TAX CHANGES I have real concerns about the changes to the tax treatment of Carried Interest in the budget. Raising the rate of Capital Gains Tax on these earnings by as much as 14% makes our tax regime less competitive, and our country less attractive to global talent. Higher rates hit those making the higher-risk, longer-term investments, which are so vital to innovation and growth in our economy. That’s why, when in Government, we worked to encourage exactly these kinds of investments by reforming the pensions charge cap to allow well-designed performance fees – unlocking deeper pools of capital for investors, and enabling higher returns for savers. These tax increases go against the grain of those reforms, and indeed the Government’s own rhetoric. What makes these tax increases even harder to justify, is that by the Treasury’s own reckoning they will raise no revenue, while costing HMRC £4.5 million to implement. As I pointed out in my speech today, at the same cost the Treasury could have provided a tax cut of roughly £1,500 to every individual affected. At the very least, the Government could have thought again and not gone ahead with this measure, which I worry will do great harm while the Treasury pays for the privilege.
Gareth Davies MP’s Post
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Finally! The details on the proposed tax changes to the capital gains inclusion rates are to be tabled on Monday morning (June 10) with a vote later in the week. https://lnkd.in/gDXbGkG6
Freeland plans to trigger a vote on capital gains tax changes next week | CBC News
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At least we'll find out the full facts this Monday, June 10th on the proposed capital gains tax changes. #financialplanners #financialadvisors #investments
Private Wealth Advisor | CWB Wealth | Financial Planner | Retirement Expert | Solving The Complexities of Wealth
Finally! The details on the proposed tax changes to the capital gains inclusion rates are to be tabled on Monday morning (June 10) with a vote later in the week. https://lnkd.in/gDXbGkG6
Freeland plans to trigger a vote on capital gains tax changes next week | CBC News
cbc.ca
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After quite a long wait, the full facts will be revealed this Monday, June 10th for the proposed capital gains tax changes followed by being voted on at some point next week. #financialplanners #financialadvisors #investments
Private Wealth Advisor | CWB Wealth | Financial Planner | Retirement Expert | Solving The Complexities of Wealth
Finally! The details on the proposed tax changes to the capital gains inclusion rates are to be tabled on Monday morning (June 10) with a vote later in the week. https://lnkd.in/gDXbGkG6
Freeland plans to trigger a vote on capital gains tax changes next week | CBC News
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This is not correct. The main area in New Zealand that is undertaxed is property. Those who are older tend to own more and more property. In the UK and Australia there are Stamp Duty taxes on property sales of 2-3%. Most residential property owners pay four times less than what a commercial property owner pays in rates on the equivalent valued property. Finally, mortgage levies charged through banks on all property loans more than $1 million can also act as a tax on captial gains. All of these taxes are much simpler to collect than a CGT and do not punish productive business investment.
A capital gains tax is the only tax base-broadening measure likely to raise a significant amount of revenue, The Treasury - New Zealand has told the government, and economist Shamubeel Eaqub says that's not surprising: "We somehow need to tax capital. That's the bit that's currently not in the system, that's what they are saying. It's not particularly controversial, every economist will tell you that..." Read more via RNZ https://lnkd.in/g2YqT6fD
Capital gains tax the best way to raise revenue as NZ 's population ages - Treasury
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Sr. Sales Representative and Key account Manager, Revenue optimization Expert, Airlines Revenue Management proffessional, Ethiopian Airlines
Setting the optimal tax rate is indeed a challenging task that requires balancing multiple economic and social factors. The Laffer Curve, as introduced by economist Arthur Laffer, illustrates this dlicate balance by showing that there is a point at which tax rates become so high that they actually reduce tax revenue, as people and businesses may reduce their economic activity or find ways to avoid taxes. The curve demonstrates that tax revenue does not increase indefinitely as tax rates rise, but rather, after a certain point, higher tax rates can lead to lower revenue due to diminishing returns. The key insight is that governments need to find the "sweet spot" where tax rates are high enough to generate necessary revenue without discouraging economic activity or causing tax evasion. Macroeconomic stability indeed depends on the government's ability to set tax rates that ensure both adequate revenue for public services and investments, while not stifling growth or creating social inequality. This requires careful consideration of the economic environment, the elasticity of tax bases, and the overall policy objectives. Moreover, the focus should also be on the broader fiscal policy, which includes not only tax rates but also government spending, debt management, and economic growth strategies. Balancing these aspects is critical for maintaining long-term economic stability.
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Nothing in life is certain - except death, taxes, and accountants sounding off when there’s a new budget on the horizon 😅 As we brace for 30th October, “death" and "taxes" seem to be cosy as ever with the changes being rumoured. With Rachel Reeves delivering the first Labour budget in 15 years, the anticipation is heightened. If history is any indicator, a post-election budget typically brings tax increases - though the scale of these changes remains to be seen. Here’s what we’re expecting: 📈Employer’s NI: Potential increase from 13.8% to 15.8% - that’s a 14.5% increase for business owners. 💷Capital Gains Tax: Exact figures are unclear, but the projected 39% rate might be a stretch. 💰Inheritance Tax: Expect changes to come through tweaks to reliefs rather than a significant rate increase. ❄️Personal Allowance Freeze: The classic "fiscal drag" at work, keeping people poorer by default. 🥹Pension Tax Relief Reforms: Rumours of limitations on relief, but this one could be politically tricky. With our tax burden already the highest since the 1940s, any changes will only add to that weight. So, we’ll sit tight on Wednesday, maybe with a cup of tea (or something stronger), ready to break down how the goalpost has once again moved further for so many. #ukautumnbudget #accountant
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As we approach the Spring Budget next week, new rumours are circulating regarding the scrapping or scaling back of the non-dom regime. Jeremy Hunt is facing pressure to offer tax cuts resulting in Treasury officials exploring a range of options to either generate more money in tax or reduce spending to make these cuts possible. We have taken a quick look at what the scheme actually is and the potential implications of what actions Mr Hunt may or may not take next week. If you need further support, get in touch with [email protected] 📩
Will ‘non-dom’ tax status be scrapped? | Cowgills
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Interesting insights from Bishop Fleming Chartered Accountants on the potential tax hikes in the UK, scheduled for October 30th, as the Labour party works to address a £22 billion deficit. While there's a commitment to keeping income tax steady, other areas like capital gains tax and inheritance tax are under serious scrutiny and could see increases. At GORDON Private Whiskey Clients, our UK clientele currently enjoys exempt status on their tequila cask investments due to their 'wasting asset' status—a benefit that could become even more valuable if these tax exemptions hold amidst rising rates.
Autumn Budget date announced, and tax rises expected | Insights | Bishop Fleming
bishopfleming.co.uk
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I help business owners demystify and take control of their personal financial health with a Sustainable Wealth Blueprint and Financial Action Plan 💰 | Sustainable Wealth 🌍 | Autism Advocate ∞ | Veteran 🚁
Tax and spend versus market forces. Just my view. Lower taxes = more money in people's pockets = more spending = engine of growth driven from people spending on private sector goods and services = economic growth (which is good) = wealth creation = more tax receipts = more funding for public sector services. Growth is driven by incentivising private investment/spending. Simple supply and demand; market forces in action. Higher taxes = less money in people's pockets = less private/business spending = engine of growth driven by government spending tax revenue on public services = slower economic growth (which is bad) = public services slowly buying private goods and services = wealth creation (eventually) = lower taxes. And so on. The first is market-driven, often associated in the UK with a conservative ideology. The second is socialist. State control of investment decisions through tax receipts and public sector spending typically associated with Labour. An assumption that the state is 'better' at making good use of our money, which is not borne out by evidence of public sector investment over-spends and delays. In my view, market forces are far more responsive to investment from spending and thus create wealth and economic growth more quickly than a tax and spend policy.
