There is speculation that the 50% tax rate for those earning over £150,000 could be abolished by 2013. Both the Chancellor George Osborne and the Business Secretary Vince Cable have recently confirmed that the rate is considered to be temporary as mentioned in an article in The Guardian here.
Advice for those over the £150,000 threshold to avoid paying more tax than necessary in the interim: Continue Reading
Home or Away – UK Statutory Residence Test
HM Treasury has published a Consultative Document on the possible statutory definition of residence. A further document was issued on the same day regarding proposals to reform taxation of non-UK domiciled residents. The proposed new Statutory Residence Test classifies migrant individuals as “arrivers” (those who have recently come to the UK), “leavers” (who have recently left the UK) or “full time workers abroad”. Continue Reading
Events are moving quickly in Europe this week and politicians are talking rubbish about raising taxes in a state of desperate panicking, instead of addressing the fundamental problem, which in my view is writing off effective bad debt.
The consultation issued by the Government outlining proposed changes to the taxation of non-UK domiciled individuals, increases the remittance basis charge but encourage foreign investments in the UK. The remittance basis charge goes from the current £30k to £50k, only applied to those resident in the UK for 12 years or more.
As reported by Grant Thornton, the Government has today released its consultation on the long awaited statutory definition of residence which they are seeking to introduce from 6 April 2012.
|How far can the US and the EU governments go to increase taxes and social security charges on wages?. With the purpose of balance their budgets, we believe that higher taxes on employment are suffocating the real economy and the prospects for employment generation.|
From the OECD site 22 July 2010 — The OECD Council today approved the 2010 versions of the OECD’s Model Tax Convention, the 1995 Transfer Pricing Guidelines and the 2008 Report on the Attribution of Profits to Permanent Establishments. The updates are the result of several years of work to improve these core OECD instruments in the area of international taxation.
There is a big debate in the British expat community in Spain about the pros and cons of having the investments in Euros versus British Pounds. As Tax Counsel I am not qualified to respond to those queries and asked Sara Perez-Frutos, the CEO of Dracon Partners in Madrid, to let me have her thoughts.
Sara and Eunjoo, a financial analyst, drafted an article for us on this topic. Please click here to download The Euro and the British Pound, good food for thought!
As reported in the OECD page, average tax and social security burdens on employment incomes fell slightly in 24 out of 30 OECD countries last year as governments struggled to shore up faltering economies amid the worst recession in decades. But whether this trend will continue this year is uncertain given the widespread pressures on public budgets.