Wealthy people are likely to leave Britain if Labour's proposals to close non-dom tax loopholes are enacted, lawyers say.
Earlier this week, the party's shadow chancellor, Rachel Reeves, announced plans to raise £2.6 billion over the next five years by closing exemptions for “non-doms”. These are people whose whose permanent home - or domicile - for tax purposes is outside the UK.
Industry lawyers say the reforms, which will subject more foreign-held assets to inheritance tax, could backfire and lead to an exodus of wealthy foreign residents.
Anthony Whatling, managing director at Alvarez & Marsal Tax, described Labour's plans as "worrying".
"This reform could intensify uncertainty, with the prospect of a 40 per cent tax on certain assets more likely to influence non-doms' decisions to stay in the UK, and casting doubt on the anticipated revenue boost from these changes," he said.
Andrew Goldstone, a tax partner at Mishcon de Reya, said Labour's plans were a "genuine concern" for wealthy non-doms who were likely to leave the UK, "taking with them their spending, investment, businesses and employment".
"This is particularly likely where they are older, unmarried or facing health issues, and where inheritance tax at 40 per cent on their global assets is a genuine concern," he added.
During the annual budget, Chancellor Jeremy Hunt announced that his government would scrap non-dom status and replace it with a “modern, simpler and fairer residency-based system”.
Ministers are also consulting on changes to inheritance tax for wealthy foreign UK residents, but the UK Treasury has said non-UK assets placed into an overseas trust by April 2025 will not be in the scope of inheritance tax.
Ms Reeves said her party would go further than the Conservatives in its tax clampdown, with the new funds going towards increasing NHS appointments and primary school breakfast clubs.
Labour also vowed to scrap a 50 per cent discount in the first year of the new rules, raising £600 million, and said foreign assets held in trusts would be subject to UK inheritance tax, potentially raising another £430 million a year.
The party also said it would invest up to £555 million a year to increase the number of compliance officers at the HMRC tax office.
“It is wrong that a minority continue to avoid paying what they owe,” Ms Reeves said in Labour’s statement. “The plan we are announcing today will give HMRC the resources it needs to go after those who are avoiding or evading tax.”
Non-dom status and inheritance tax
Under the UK's current regime, non-domiciled residents, from middle-ranking bankers to multi-billionaires, don’t pay UK taxes on their overseas earnings.
More than one in five bankers earning more than £125,000 ($160,000) previously claimed non-dom status, according to 2022 research by the London School of Economics and the University of Warwick.
At the moment, no inheritance tax is due on non-UK assets of non-doms until they have been UK resident for 15 out of the past 20 tax years.
The government says it is consulting on the best way to move inheritance tax to a residence-based regime.
"Decisions have not yet been taken on the detailed operation of the new system, and we intend to consult on this in due course," the Treasury has said.
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
RIDE%20ON
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UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE Tour 2020
Stage 1: The Pointe Palm Jumeirah - Dubai Silicon Oasis, 148km
Stage 2: Hatta - Hatta Dam, 168km
Stage 3: Al Qudra Cycle Track - Jebel Hafeet, 184km
Stage 4: Zabeel Park - Dubai City Walk, 173km
Stage 5: Al Ain - Jebel Hafeet, 162km
Stage 6: Al Ruwais - Al Mirfa, 158km
Stage 7: Al Maryah Island - Abu Dhabi Breakwater, 127km
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French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
COMPANY%20PROFILE
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In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
OTHER IPL BOWLING RECORDS
Best bowling figures: 6-14 – Sohail Tanvir (for Rajasthan Royals against Chennai Super Kings in 2008)
Best average: 16.36 – Andrew Tye
Best economy rate: 6.53 – Sunil Narine
Best strike-rate: 12.83 – Andrew Tye
Best strike-rate in an innings: 1.50 – Suresh Raina (for Chennai Super Kings against Rajasthan Royals in 2011)
Most runs conceded in an innings: 70 – Basil Thampi (for Sunrisers Hyderabad against Royal Challengers Bangalore in 2018)
Most hat-tricks: 3 – Amit Mishra
Most dot-balls: 1,128 – Harbhajan Singh
Most maiden overs bowled: 14 – Praveen Kumar
Most four-wicket hauls: 6 – Sunil Narine
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Indian construction workers stranded in Ajman with unpaid dues
The specs
Engine: 1.6-litre 4-cyl turbo and dual electric motors
Power: 300hp at 6,000rpm
Torque: 520Nm at 1,500-3,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.0L/100km
Price: from Dh199,900
On sale: now
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
RESULT
Aston Villa 1
Samatta (41')
Manchester City 2
Aguero (20')
Rodri (30')
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
COMPANY%20PROFILE
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
Brief scores:
Toss: Australia, chose to bat
Australia: 272-9 (50 ov)
Khawaja 100, Handscomb 52; Bhuvneshwar 3-48
India: 237 (50 ov)
Rohit 56, Bhuvneshwar 46; Zampa 3-46
Player of the Match: Usman Khawaja (Australia)
Player of the Series: Usman Khawaja (Australia)
TALE OF THE TAPE
Manny Pacquiao
Record: 59-6-2 (38 KOs)
Age: 38
Weight: 146lbs
Height: 166cm
Reach: 170cm
Jeff Horn
Record: 16-0-1 (11 KOs)
Age: 29
Weight: 146.2lbs
Height: 175cm
Reach: 173cm
The%20Genius%20of%20Their%20Age
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CRICKET%20WORLD%20CUP%20LEAGUE%202
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Company%20Profile
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