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A Political Thread pt. 2

ncurd said:
I've always been wary about him since he opposed the firebreak lockdown back in October 2020.

Now he'll be forever on a list of nearly PMs just 3 months ago he was probably just a press conference away from the big job.

www.bbc.co.uk

Rishi Sunak faces questions over wife Akshata Murty's non-dom tax status

Labour demands to know whether the chancellor has benefited from his wife's tax arrangements.
www.bbc.co.uk
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Just to clarify what being non-domiciled is for tax purposes. In Rishi's wife's case she's an Indian National and she's basically saying that she will return to India at some point.

For first 6 years she is non Dom she doesn't pay tax on her overseas income and gains as long as she doesn't remit them (bring it in) to the country. Then once she's UK res. for 7/9 previous tax years she's got to pay £30k a year to not be taxed on her overseas income and gains. And then once 12/14 the charge goes up to £60k a year.

After 15/20 years she's deemed UK domicile for income tax and IHT and taxable on her worldwide income and gains.

Yeh, our tax system is bent like that to favour very rich foreign nationals.
 
The_Blindside said:
www.theguardian.com

Britain, Canada and Australia decline so far to expel Russian diplomats

UK foreign secretary Liz Truss said cooperation with Moscow is over but has not yet acted in line with EU nations
www.theguardian.com www.theguardian.com
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Have heard the argument (James Cleverly I think?) that the types of diplomats, I assume diplomats in the most perverse sense possible, that the EU etc are expelling are the same ones that we got rid of at various points over the past decade, Salisbury, Crimea etc and that this is actually other countries playing catch up to us
 
The_Blindside said:
Just to clarify what being non-domiciled is for tax purposes. In Rishi's wife's case she's an Indian National and she's basically saying that she will return to India at some point.

For first 6 years she is non Dom she doesn't pay tax on her overseas income and gains as long as she doesn't remit them (bring it in) to the country. Then once she's UK res. for 7/9 previous tax years she's got to pay £30k a year to not be taxed on her overseas income and gains. And then once 12/14 the charge goes up to £60k a year.

After 15/20 years she's deemed UK domicile for income tax and IHT and taxable on her worldwide income and gains.

Yeh, our tax system is bent like that to favour very rich foreign nationals.
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Great explanation.

I think Tony Blair (and other high net worth individuals) also found a way to avoid paying stamp duty by purchasing their multi million pound home via an offshore company. It's amazing how the Government closes tax loopholes that your average working person might save a few quid from but keeps the big ones open open for high wealth individuals.

Same goes for money laundering. It's your average working person who has go through the pain of complying with money laundering regulations when opening a bank account or buying a home but then you get all the dirty money flowing in via the Saudi takeover of Newcastle United and all the Russian oligarchs and nobody bats an eyelid.
 
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The Oggmonster said:
Great explanation.

I think Tony Blair (and other high net worth individuals) also found a way to avoid paying stamp duty by purchasing their multi million pound home via an offshore company. It's amazing how the Government closes tax loopholes that your average working person might save a few quid from but keeps the big ones open open for high wealth individuals.

Same goes for money laundering. It's your average working person who has go through the pain of complying with money laundering regulations when opening a bank account or buying a home but then you get all the dirty money flowing in via the Saudi takeover of Newcastle United and all the Russian oligarchs and nobody bats an eyelid.
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Laws are there to maintain the existing power structures, those with power and wealth use the legal system to keep it and grow it at the expense of everyone else. Been that way since forever.
 
Ragey Erasmus said:
Laws are there to maintain the existing power structures, those with power and wealth use the legal system to keep it and grow it at the expense of everyone else. Been that way since forever.
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Yeah I get that but it's just hypocritical of the Tories to run an anti immigration Brexit and GE campaign which saw lots of valuable European nurses, doctors, care workers, construction workers etc. leave while at the same time welcoming high net worth foreigners in with open arms.
 
The Oggmonster said:
Yeah I get that but it's just hypocritical of the Tories to run an anti immigration Brexit and GE campaign which saw lots of valuable European nurses, doctors, care workers, construction workers etc. leave while at the same time welcoming high net worth foreigners in with open arms.
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I know, I just wanted to type out my cynicism in the hope it would feel better. It didn't.
 
278009501_364391522400680_270473807315869574_n.jpg
 
Not Mike Brown's Sock said:
Woman who is not a politician pays taxes in multiple countries, what a travesty

;)
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There's also double tax treaty between India and UK so she wouldn't pay the same tax twice On the same income. There's no real reason why the Non Dom system has to continue to exist.
 
Tbh the whole surge of anti-Sunak stories recently scream leadership election post May tbh

Our tax rates across the board are far from a good thing in my book regardless, and that goes for dividends too
 
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ncurd said:
FTFY
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Yes, thank you for the correction. And I have worked in tax for over 16 years and still find it hard to explain Domicile to lay peeps. It's a concept not defined in the legislation and relies on case law and HMRC interpretation.

Basically means where your "permanent home" is. In Mrs Rishi's case she is not Non Domiciled by virtue of being an Indian National or Citizen, she has to make a claim for it. If reports of £11m divs from her 1% shares in her father's company are correct then she is legally avoiding at least 38.1% UK tax on this income. Higher in the coming tax years at 39.35%. Ignoring the £2k allowance.

If I were her tax advisor it's a no brainier to make the claim. Doesn't make it morally right seeing as who she is married to.

I am sure Rishi and his wife will be more concerned not paying IHT on the value of the shares assuming she stays 15/20 years but not a given. And I don't think 100% Business Property relief applies. And that tax rate is higher on 40%. But there will be tax squeezes which I am sure her tax advisors are planning for.
 
The_Blindside said:
That would be hilarious if HMRC do challenge her Non Dom status. Yes, like most things in UK tax you have to make a claim or an election, unless it's automatic.
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What would happen if she ends up remaining in the UK and not going back to the India (which is what I imagine will happen)? Would she get away with claiming that she 'changed her intentions' after max'ing out the benefits of being a non dom? Seems a bit suss to me. People who do that should then be taxed retrospectively IMHO.
 

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