UK Wealth Tax Proposal Sparks Investment Fears and Debate

[Martin Everson]

https://thefinancialanalyst.net/202...-proposal-sparks-investment-fears-and-debate/

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The UK’s political landscape has shifted, with the government refusing to rule out a wealth tax, a move that could significantly impact investors and the broader economy. This development comes as Chancellor Rachel Reeves prepares to raise taxes in the autumn to address fiscal shortfalls, a scenario that has sparked debate and uncertainty.

The potential introduction of a wealth tax has been met with mixed reactions. Proponents, including former Labour leader Neil Kinnock and several union leaders, argue that such a tax could generate substantial revenue, potentially over £10 billion annually, by targeting asset values above £10 million. They contend that this approach would ensure the wealthiest contribute more significantly to public finances, aligning with Labour’s commitment to progressive taxation.

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[LegitBananas]

They just set a record for millionaires permanently leaving the UK in a single year, and now they start this discussion? Lol

 

[Alonzo]

Very unlikely to happen. They did too much damage already by removing non dom

Btw Starmer "promised" one day to increase the income tax bracket on income over £150k a few years ago. Now PM, he is against it and instead his party froze the tax brackets

 

[cherry]

Socialists really don't have the slightest f**k what they're doing, do they?

 

[HardRJones]

The UK will likely be the first western nation to follow the US into citizenship-based taxation. They just can’t help themselves.

 

[Alonzo]

The UK will likely be the first western nation to follow the US into citizenship-based taxation. They just can’t help themselves.

Won’t happen IMO. Starmer has been centrist leaning fiscally atm

 

[Martin Everson]

The UK government is not in a good fiscal position to discount any crazy policy. The big question is which of the crazy policies they are thinking about to raise tax revenue will they go forward with in autumn budget. Otherwise budget cuts are on the menu.

UK markets head back into troubled waters as fiscal angst rises​

https://www.reuters.com/world/uk/uk...roubled-waters-fiscal-angst-rises-2025-07-03/


P.S I saw talk of easing the anti non-dom policies but would not hold my breath.

 

[HardRJones]

Won’t happen IMO. Starmer has been centrist leaning fiscally atm

It doesn’t matter whether it’s Labour or the Tories. The Brits just can’t stop themselves from shooting (or maybe cutting, with an anti-stab knife under 8 cm only, please) yet another toe off. It might not be this year, but, given enough time for contemplation, perfidious Albion will inevitably choose to do the worst possible thing.

 

[Alonzo]

It doesn’t matter whether it’s Labour or the Tories. The Brits just can’t stop themselves from shooting (or maybe cutting, with an anti-stab knife under 8 cm only, please) yet another toe off. It might not be this year, but, given enough time for contemplation, perfidious Albion will inevitably choose to do the worst possible thing.

Oh so this wasn’t the thread’s topic.

It could for sure happen one day if they can’t responsibly handle gov spending efficiently or have no solution left to mitigate the deficit if it gets too high.

 

[HardRJones]

They’ll start by removing non-dom. Then comes the wealth tax. Then they realize the wealthy are leaving (because honestly there is little reason to live in the UK…it’s so small and Europe is so close by). Then comes citizenship-based taxation. Five years away, at most.

 

[HardRJones]

UK politicians don’t think in terms of individual choice and incentives. They only think in terms of punishment and force to ensure things are done the way they want.

 

[Martin Everson]

This wealth tax commission below recommend a one off wealth tax that is backwards looking. So would include recent emigrants who were resident for 4 of the previous 7 years. This makes it for many difficult to avoid and easier to sell to public.

https://www.ukwealth.tax/

Only problem is Spain introduce a temporary wealth tax in 1977 and guess what.....its still there till today (although it was suspended for 4 years during that period) .

 

[Davis123]

This wealth tax commission below recommend a one off wealth tax that is backwards looking. So would include recent emigrants who were resident for 4 of the previous 7 years. This makes it for many difficult to avoid and easier to sell to public.

https://www.ukwealth.tax/

Only problem is Spain introduce a temporary wealth tax in 1977 and guess what.....its still there till today (although it was suspended for 4 years during that period) .

Didn't British actor Sir Roger Moore opted for Switzerland retirement instead of UK years ago ? Pretty smart guy.

 

[Alonzo]

Didn't British actor Sir Roger Moore opted for Switzerland retirement instead of UK years ago ? Pretty smart guy.

And Sean Connery was chilling with @Martin Everson till 2020.

They knew.

 

[Martin Everson]

Didn't British actor Sir Roger Moore opted for Switzerland retirement instead of UK years ago ? Pretty smart guy.

And John Cleese moved to Nevis also years ago .

https://spearswms.com/wealth/john-cleeses-escape-st-kitts-and-nevis/

Seems people who got out early have avoided any risk of any crazy new tax laws in UK.

 

[Xshore]

So would include recent emigrants who were resident for 4 of the previous 7 years. This makes it for many difficult to avoid and easier to sell to public

Would it be legal to put a tax on a non tax resident, based on previous residence?

 

[Alonzo]

Would it be legal to put a tax on a non tax resident, based on previous residence?

Norway and few EU countries are already doing it

 

[manukahoney]

UK politicians don’t think in terms of individual choice and incentives. They only think in terms of punishment and force to ensure things are done the way they want.

They only care about getting re-elected. Nothing more, nothing less. And considering how fractured the British society has became it's getting more and more difficult to select policies that will get some support amongst some voters while not alienating others. "Tax the rich" is one of the few policies that is actually supported by most of the population due to obvious reasons (they already are poor or have nor aspiration nor opportunity to become rich) so Labour is actively pushing the agenda while trying to minimise actual harm to the economy. No-one except crazy corbinistas believe that this will bring any extra income in long term, but they don't have a long term vision, they only care about winning the next elections.

 

[manukahoney]

Would it be legal to put a tax on a non tax resident, based on previous residence?

Almost certainly impossible, they just don't have means and recourses to recover tax from non-residents.
However they might catch those who are still considering to leave and tax them before they become non-residents. That also might prevent them from leaving as the tax will be already paid and leaving the UK will be less viable economically.

 

[aniglo22]

Would it be legal to put a tax on a non tax resident, based on previous residence?

Germany, France, Spain, Netherlands have it for gift & inheritance tax .