UK Wealth Tax Proposal Sparks Investment Fears and Debate

[Martin Everson]

Yes. The UK already has the Statutory Residency‍ Test where you can still be considered tax resident if you have sufficient ties to⁠ the UK and are not living there any longer. The end goal is to capture⁤ those HMWI that have left the UK in last few years making escaping the tax⁣ impossible for them.....it's evil....lol.

Seems things move fast and this is far worse idea...enhancing exit⁢ taxation 😕.

Costly departures: Why an exit tax looks more likely than a wealth tax︀​

https://www.msn.com/en-us/money/eco...oks-more-likely-than-a-wealth-tax/ar-AA1J2uP7

 

[Xshore]

yes but that means they are still tax resident. I'm asking if they can put︀ this tax on a non tax resident. Or maybe you're suggesting that they'll change the︁ tax residency rules?

 

[Xshore]

No, they are making it harder/take longer to become non tax resident. They don't tax non‌ tax residents.

 

[Alonzo]

They do it temporarily‌ if you move to a tax haven. At least from local sourced income at full‍ income tax

 

[slink]

This is what I‍ worry about.

 

[Martin Everson]

I don't think they can once your⁠ non-tax resident. Also as a non-tax resident you maybe subject to protection under a double⁤ taxation agreement with your new resident country giving them no jurisdiction in law to tax⁣ you. It may require changing or cancelling DTA's for them to get you. It would⁢ be non-starter as it would scare of foreign investors coming to UK even more.

 

[jkl197]

uk gov is not happy as they are not on the top of this ranking:‌
https://en.wikipedia.org/wiki/List_of_countries_by_inheritance_tax_rates

so probably they are considering to increase it

they are not discussing only about‍ wealth tax, they have on the table many options, e.g. increasing business rates, another blood⁠ bath for any company operating on physical premises

 

[Martin Everson]

Damn Belgium⁤ has 80% IHT? 😳 But yes that's a possibility and it was not ruled out in⁣ Labours manifesto.

The UK has a few options such as increasing CGT to normal income⁢ tax levels. But they made tax pledges in their manifesto I don't expect them to︀ break. I would expect them to honor their word right?

https://www.grantthornton.co.uk/insights/tax-pledges-a-party-manifesto-comparison/

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"It’s also worth noting that the Labour manifesto pledged to reduce the burden on business rates︁ for brick-and-mortar businesses."

---- quote end

Everything points to stopping the exodus of the wealthy︂ and screwing the middle class again somehow.

P.S If you want to know what the︃ UK will look like in several years if it does not change path then imagine︄ Spain without the sunshine and good food 🙁.

 

[Alonzo]

The rates shown in‌ Wikipedia are misleading.

30% is for direct lineage while 65%,70%,80% are for siblings, uncle/aunt/nephews/nieces and‍ others. Belgium has always been a super tax hell
This is by far the most realistic⁢ outcome for the Autumn budget. Will be like the 2000s when everything was max 40%︀ top rate.

 

[jkl197]

it looks like they dont know what are doing and what to do next

https://www.businessinsider.com/uk-losing-crown-as-global-hub-for-the-worlds-rich-2025-7

 

[polonieth]

They know exactly what they are doing. All these small‍ carrots, like "golden visa" are just smoke and mirrors.

They know that when all the⁠ rich leave, and then there's a total economic collapse, then the "solution" is to seize⁤ the means of production and implement communism.

It's not down to the "incompetence" of public⁣ officials. They are Communists, all intentional, and they are working with Mr Global to actively⁢ try and bring down the U.K.

Imagine how good the UK could have been post-Brexit.︀ Drop corporate taxes, make it uber crypto-friendly. Bring back some high-level manufacturing. It already has︁ all the infrastructure. All very sad.

 

[dany]

that would be a dream come true

 

[manukahoney]

That would require a complete dismantling of the welfare state.⁠ Get rid of pension ponzi scheme, make NHS available, but not free, cut the educational⁤ subsidies for unis, drop all the freebies for disabled and less fortunate, cut the foreign⁣ aid etc. It's just not possible, that can not be done in a democratic country,⁢ you need to have an absolute power to execute this kinda stuff. So again, UK︀ will continue to go downhill, the only question is whether it will be faster or︁ slower than EU.

 

[SoNewToAllShit]

That’s never going to happen, politicians are there first and foremost to line their own‍ pockets and to make the rich even richer and more powerful.

 

[Alonzo]

Ok Reeves is now considering a reform on real estate transfer tax aka stamp duty‌ and annual property tax aka council tax

https://www.theguardian.com/money/2025/aug/18/rachel-reeves-stamp-duty-property-tax-council-tax#:~:text=The national tax would be,via HM Revenue and‍ Customs

"Officials are initially examining a potential national property tax, which would replace stamp⁠ duty on owner-occupied homes, sources said. They are also studying whether, after the national tax,⁤ a local property tax could then replace council tax in the medium term in an⁣ effort to repair battered local authority finances."

 

[manukahoney]

So you already‍ paid stamp duty when you bought the property. And now you are going to pay⁠ sales tax when selling and then a CGT on the top of it. Double milking⁤ the same person.

 

[Martin Everson]

Humm why don't they just charge people with homes⁠ valued at over £1,000,000 a flat £5,000 a year tax. And people with homes over⁤ £5,000,000 a £15,000 a year tax. Just over 700k households would screw about it out⁣ of 28.4m households. Even in tax friendly Bahamas we have higher property taxes than UK⁢ (council tax) and so do a few other islands out here.

https://www.independent.co.uk/news/uk/home-news/house-prices-million-pound-homes-b2703159.html

 

[HardRJones]

Property tax is a specifically targeted wealth tax.

 

[manukahoney]

The council tax is paid by the tenant. The property tax is paid by the‌ landlord and will be immediately passed on the tenants by raising the rent, with 20-45%‍ on top depending on the tax bracket of the landlord. So it will hit the⁠ tenants most, raise inflation and add to the housing crisis. Bravissimo!

 

[luap]

Notice how it states it only effects owner-occupied properties? That means investors can pay once‌ and hold the asset for years. This will only hurt individuals who want to own‍ their home.

I wonder who's lobbying for this change?