UK's Richest Face New 20% Tax on Assets Abroad as Chancellor Reeves Considers Plan
In a move aimed at reducing capital flight and generating an estimated £2 billion for the public purse, Chancellor Rachel Reeves is reportedly considering introducing a 20% tax on the assets of UK expats who decide to leave the country. The proposed "settling-up charge" would apply to business assets, such as shares in companies, with no exemption for properties worth more than £6,000.
Under the new plan, individuals would be required to pay the 20% tax on their asset values when they exit the UK, potentially altering the treatment of capital gains tax. The government source stressed that no decisions have been made yet and that several tax options are still being modelled by the Treasury.
Industry experts say that the UK is currently an "outlier" in not having such a tax in place, with most other G7 nations imposing similar levies on their citizens when they leave. The aim of the new policy would be to make it more attractive for investors to stay in the country while discouraging those who are already planning to relocate.
One potential benefit of the scheme is that it could allow individuals to delay payment of the charge for several years, if they decide not to liquidate their assets immediately. However, experts warn that announcing such a policy without immediate implementation risks sparking capital flight as people try to leave the country before the new tax comes into effect.
Combining this policy with a plan to stop capital gains tax being payable on profits made from investments prior to arrival in the UK could provide a "fair and symmetrical" treatment of taxes for those relocating. Tax experts believe that this would incentivize more investors to move to the UK.
In a move aimed at reducing capital flight and generating an estimated £2 billion for the public purse, Chancellor Rachel Reeves is reportedly considering introducing a 20% tax on the assets of UK expats who decide to leave the country. The proposed "settling-up charge" would apply to business assets, such as shares in companies, with no exemption for properties worth more than £6,000.
Under the new plan, individuals would be required to pay the 20% tax on their asset values when they exit the UK, potentially altering the treatment of capital gains tax. The government source stressed that no decisions have been made yet and that several tax options are still being modelled by the Treasury.
Industry experts say that the UK is currently an "outlier" in not having such a tax in place, with most other G7 nations imposing similar levies on their citizens when they leave. The aim of the new policy would be to make it more attractive for investors to stay in the country while discouraging those who are already planning to relocate.
One potential benefit of the scheme is that it could allow individuals to delay payment of the charge for several years, if they decide not to liquidate their assets immediately. However, experts warn that announcing such a policy without immediate implementation risks sparking capital flight as people try to leave the country before the new tax comes into effect.
Combining this policy with a plan to stop capital gains tax being payable on profits made from investments prior to arrival in the UK could provide a "fair and symmetrical" treatment of taxes for those relocating. Tax experts believe that this would incentivize more investors to move to the UK.
. It's like, I get where they're trying to generate some cash, but are they really planning on scaring off all these international investors? I mean, the UK is already not the most welcoming place for expats in terms of taxes and regulations. Adding a 20% tax on assets abroad just feels like a huge disincentive to stay.
. I'm not sure if the government is thinking about the human impact of this policy, or if it's just all about the numbers.
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maybe should focus on making uk an attractive place 4 people 2 stay instead 
. Introducing a 20% tax on assets abroad is like the ultimate wake-up call for UK expats who think they can just take their money and leave whenever they want 
. And as long as they're willing to offer some sort of delay on payment or tax breaks for those who are committed to staying, I think this could be a game-changer 
. If you want to play the game, you gotta pay the price 
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it was found using NASA's Hubble space telescope and scientists are super excited about it!! anyway back to this tax thing... i dont get why they need 20% of ur assets lol that sounds like too much money! what if u wanna leave the country but can't cuz u gotta pay all that? 
It seems like a pretty one-way street to me. I mean, can't we just have some normal rules that apply to everyone? And what's the deal with the £6,000 threshold for properties? That's still kinda steep if you ask me...
. I mean, why should people get to just leave the country with their ill-gotten gains and escape taxes? It's only fair that they give a bit back to the state that helped them build their wealth in the first place 
. And let's be real, if everyone else is doing it, why can't we? The US, Canada, even Australia - all of these countries have some form of tax on expats when they leave. So, what's the UK really afraid of? Losing a few billion pounds? I think it's about time we took a stand and said enough is enough 
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. It's about time we got some sense of balance in our tax system, don't you think? 
Of course, there's always going to be some risk of capital flight, but if we can make it more attractive for people to stay in the UK, that's a win-win! 
What do you guys think? Should we be welcoming our rich friends back with open arms or making them pay up?