How do we improve our tax take?

On an income of 1.2 million the tax and nic leaves around half ….. so paying at least 50 percent which is not a small proportion of tax by any measure.

Around 240000 people from the Uk thought to be living in Dubai currently with many more expected. I wonder what the loss to HM Treasury is if anything - do more people just fill the posts left vacant and continue to pay tax? I guess it’s only if the role relocated abroad that income is lost here?

ronib

On an income of 1.2 million the tax and nic leaves around half ….. so paying at least 50 percent which is not a small proportion of tax by any measure.

It's not half. Even the top rate of income tax in the UK is 45% (not half) and it's only due on income over £125,000. The rate of National Insurance is only 2% for high earners on anything in excess of £4,189 a month.

David49

growstuff

David49

Most wealth is held as property or shares, shares are already taxed. Property is taxed through the rates system and then again when it is sold (except domestic), the system is already in place to change taxation of property. I’m not sure that an increase would yield much extra, if property were less attractive to own, value would fall and less CGT would be made.

A fall in property prices would mean that more people could afford to buy rather than rent. Making property less attractive to own as an investment would lead to a fall in prices and would redistribute asset wealth.

Macro-economics doesn't always have to be about total increases, but also equality and the distribution of wealth.

Agreed it would reduce the rise in property prices, but if property taxation increased would the home owner be any better off. The house might cost less but the annual rates would be higher, there would need to be reliefs at the lower end, but what about the retired couple living in a £1m house.

A wealth tax is attractive from an idealogical viewpoint which may make it a contender at the next budget.

What it would do is redistribute wealth and reduce inequality.

Allsorts

Taxing extremely rich is counter productive. Owning property will always be a better proposition than renting, Young people find it impossible to rent and save for a deposit, the lucky ones have help from mom and dad, the rest its so hard tor them. . The class divide is getting wider. The low paid should have a higher tax allowance. We need more people in work paying into the system.

A higher income tax allowance for the low paid would benefit everybody up the income scale unless tax rates were increased for those above a threshold. If they weren't to be increased, higher earners would benefit more than the low paid.

GrannyGravy13

ronib

It’s just come to my attention that high earners are relocating to Dubai which is a tax free haven with excellent international schools and outstanding medical care. Crime rates are low. Air conditioners are essential.
My observation is that for a certain group of highly taxed families the UK is a very unwelcoming proposition. I wonder when this government will come to its senses if ever ….

I know two families who have relocated to Dubai since the last election. Another is on the process of moving over there.

Good luck to them! Personally, I would hate to live in Dubai, even if I were a billionaire.

It would take a lot more than a tax advantage to get me moving to Dubai, there are many other places more appealing.

Well we can all imagine how difficult life in Dubai might be but for an increasing number of high income people, it’s preferable to living here under Labour. It’s quite a sobering thought. Growstuff

ronib

It’s just come to my attention that high earners are relocating to Dubai which is a tax free haven with excellent international schools and outstanding medical care. Crime rates are low. Air conditioners are essential.
My observation is that for a certain group of highly taxed families the UK is a very unwelcoming proposition. I wonder when this government will come to its senses if ever ….

That sounds wonderful, why cant it be like that here? I read recently that Noel Edmonds has relocated to New Zealand as he didnt like the way this country is going. Those who can escape are……..

Tax and Nic contributions on 1.2 million are £552,214.00. Plus 20 percent tax on school fees for 3 children. Plus private health care fees.

It’s all about choices. I wouldn’t trade my freedom to live in Dubai, whatever the economy in the UK was like. In the meantime, record numbers of Americans are choosing to live and work in the UK now - it’s horses for courses.

Have you ever been to Dubai Casdon?

growstuff

David49

Most wealth is held as property or shares, shares are already taxed. Property is taxed through the rates system and then again when it is sold (except domestic), the system is already in place to change taxation of property. I’m not sure that an increase would yield much extra, if property were less attractive to own, value would fall and less CGT would be made.

A fall in property prices would mean that more people could afford to buy rather than rent. Making property less attractive to own as an investment would lead to a fall in prices and would redistribute asset wealth.

Macro-economics doesn't always have to be about total increases, but also equality and the distribution of wealth.

I agree Growstuff. Living in France has taught me that people regard their home only as somewhere to live, not a means of increasing capital and making money. I don't doubt that there are greedy landlords and property developers, especially in some of the big cities, but it does not seem to be the case for most areas.
There is also a lot of regulation around rentals.
I think television programmes have done a lot of damage to people's views on the "property market" and money to be made.

678000 UK people live in USA. 6,100 USA citizens applied for UK residency recently and around 200,000 live in UK. Of course with a mobile population, there is no guarantee that they will stay.

ronib

Tax and Nic contributions on 1.2 million are £552,214.00. Plus 20 percent tax on school fees for 3 children. Plus private health care fees.

Eh? It's not compulsory to send your children to a private school.

ronib

Tax and Nic contributions on 1.2 million are £552,214.00. Plus 20 percent tax on school fees for 3 children. Plus private health care fees.

What figures are you using to calculate that?

Teazel2

ronib

It’s just come to my attention that high earners are relocating to Dubai which is a tax free haven with excellent international schools and outstanding medical care. Crime rates are low. Air conditioners are essential.
My observation is that for a certain group of highly taxed families the UK is a very unwelcoming proposition. I wonder when this government will come to its senses if ever ….

That sounds wonderful, why cant it be like that here? I read recently that Noel Edmonds has relocated to New Zealand as he didnt like the way this country is going. Those who can escape are……..

Ha! Maybe that's where Mr Blobby can be found.

growstuff Reed salary calculator.

ronib

Tax and Nic contributions on 1.2 million are £552,214.00. Plus 20 percent tax on school fees for 3 children. Plus private health care fees.

Don't bother giving me the figures. I've just worked it out. That's not 50% of £1,200,000. It's 46%.

growstuff

Teazel2

ronib

It’s just come to my attention that high earners are relocating to Dubai which is a tax free haven with excellent international schools and outstanding medical care. Crime rates are low. Air conditioners are essential.
My observation is that for a certain group of highly taxed families the UK is a very unwelcoming proposition. I wonder when this government will come to its senses if ever ….

That sounds wonderful, why cant it be like that here? I read recently that Noel Edmonds has relocated to New Zealand as he didnt like the way this country is going. Those who can escape are……..

Ha! Maybe that's where Mr Blobby can be found.

Yes indeed! 😉

ronib

Well we can all imagine how difficult life in Dubai might be but for an increasing number of high income people, it’s preferable to living here under Labour. It’s quite a sobering thought. Growstuff

Not really! I wonder what kind of values they have. TBH I'd rather not have them around.

growstuff it’s cost efficient for the country to have children in private schools so adding 20 per cent to the bill is nonsense.

ronib You wrote:

"On an income of 1.2 million the tax and nic leaves around half ….. so paying at least 50 percent"

No, it's not at least 50% and they're daft if they haven't got a financial adviser who can reduce that.

A friends daughter and her husband spent 10 yrs working in Dubai earning mega bucks, 5 yrs ago the job moved to Sydney, still a jet set lifestyle.
Close to retirement now, they plan to settle in Rural Australia, there are some lovely small towns in the leafy part of Victoria without feeling isolated.

ronib

growstuff it’s cost efficient for the country to have children in private schools so adding 20 per cent to the bill is nonsense.

No, it isn't. In any case, it's hardly a justifiable expense just because you're wealthy.

One of the richest people in Essex used to send his children to a state school. One of them was my daughter's best friend.

He did, however, donate about £15 million to the school to build a new hall!