There's also an effect on the bonds they use to raise money through the carry interest.
How’s that work?
I had to look it up.
The carry interest is the money thieving bastard "investors" make on the money they hold for you, and use to give you a return. Like thieving bastard pension companies. They take say £100, give you a "safe and secure" £4, while making making easily £50 this year, for themselves.
That is paid to the partners as a bonus, which for some reason is taxed as cgt.
Those figures are not silly. If I can make over 100% in a year just using 2-3 obvious unrisky funds and ETFs, not really "trading" or trying very hard, imagine what a sophisticated financier can do.
I know a fellow this affects
He uses a trading bot, which returns him about 34% a year. Whizzy woo, no problem attracting people, evidently.
He quotes that and people hand over their money to get a good rate. He multiplies
his investments, = his own and maybe some of his clients' in some way which I daresay is thoroughly(?) regulated. People like him can use lots of tricks, such as , coincidentally with a similar name, the carry trade. That's where you borrow as much as possible from say Japan, at a tiny rate, and reinvest it somewhere the interest rate is much higher. There's a "gearing" in there which means you don't lose it all when you swap the money back to your own currency. The gearing can be as much as 1000.. (That's why there's of the order of $10,000,000,000,000 of money moved around the world every day - Reeves should use that...)
I'm in the dispicable end of JD's graphs. If/when I carry on day trading ( = short term investing) I can do it in schemes which are designed to avoid paying tax. If HMRC think it's your "job" it still gets taxed, but I don't know anyone who actually pays tax using them. I didn't bother to avoid until recently, happy to pay, but it's a bit complex. Simpler to avoid. . If you're an old git like me you and your wife filled your isas ever since they were TESSAs, which are all tax free, as are dividends from pensions.
If you think the growth figures are BS, an example in one wee graph for a co you might have heard of: Near 80x in a year and a bit. I could have picked others, eg NVIDIA3 which went 183x
I don't know much about IHT, except that , not mentioned above, the allowance can be passed from a deceased spouse to the surviving, so 650k which covers a lot more houses.
Passing on, from us, the cat's home will have to be happy with what's not taxed.
Reeves has shot herself in the foot according to some. Non-Doms can be truly wealthy and spend a lot in this country because they live here. They'll go abroad, to benefit from other countries' continuing non-dom status.
There is International IHT , so as soon as rich people move abroad, the sooner they escape the clutches of the Uk's rules. They'll pay none here and save millions/billions, if they had it. Should have taken the blinkers off, Rache. They only have to spend part of the year elsewhere, I believe..