Fair tax: Maybe rich people should pay it too."

[JohnD]

" UK entrepreneur and Labour party donor Dale Vince is planning to challenge the country’s tax authority over the way it taxes private equity profits.

The planned legal action is the latest twist in a long-running debate over the tax treatment of so-called carried interest, the share of profit buyout fund managers typically receive from asset sales. Such payments are currently taxed as capital gains, rather than at the higher rate of ordinary income.

The payments dealmakers can individually earn from successful deals can run into the tens of millions. In the tax year 2020-21, a group of just 255 of the UK’s top private equity executives earned £2.7bn in carried interest."

FT.com

 

[diy_fun_uk]

I wonder how far he'll get with his challenge ...

 

[JohnD]

If necessary, a future government has the ability to clamp down on tax-dodging.

Nobody seriously expects the Cons to do it.

 

[Odds]

If necessary, a future government has the ability to clamp down on tax-dodging.

Nobody seriously expects the Cons to do it.

Wasn't that supposed to happen after the 2008 financial crash? you know, crack down on those offshore accounts where companies hid the finances to shower golden bonuses upon their wizz kidz in t'City.
Every time some bright spark comes out with a 'new' plan to do this the Corporations ring their lawyers, let them get on with it, and get back to work.

 

[JohnD]

Billionaire Buddies.

 

[Mottie]

If necessary, a future government has the ability to clamp down on tax-dodging.

Nobody seriously expects the Cons to do it.

....and only a fool would dream that Labour would do it.

 

[carmanmemoranda]

....and only a fool would dream that Labour would do it.

More likely to try than the Tories though.

 

[JohnD]

I wonder if the Bra Baroness paid tax on her offshore millions.

Can you imagine a country where the cohabiting wife of the chief Finance Minister, responsible for collecting tax, and subsequently the Prime Minister, claimed to live overseas and therefore paid no income tax?

 

[motorbiking]

If necessary, a future government has the ability to clamp down on tax-dodging.

Nobody seriously expects the Cons to do it.

How is declaring capital gains on capital gains, tax dodging?

Many small businesses leverage entrepreneur relief on business capital. We cannot have different rules for the same thing.

We are already seeing too many of these deals getting done off-shore as it is.

 

[JohnD]

How is getting your buddies to write the rules so that you dodge tax, tax-dodging?

Remember those MPs claiming expenses for house furnishings, rent, and duck ponds?

"But it was in the rules" they said.

Who wrote those rules?

 

[carmanmemoranda]

How is declaring capital gains on capital gains, tax dodging?

Many small businesses leverage entrepreneur relief on business capital. We cannot have different rules for the same thing.

We are already seeing too many of these deals getting done off-shore as it is.

This makes the argument for making tax rules much simpler, and fairer.

Who sets the rules?

 

[diy_fun_uk]

....and only a fool would dream that Labour would do it.

This is what will be very interesting to watch should Labour get in come the next GE i.e. how effectively and quickly they sort out all the stuff they say they would manage better than the Tories.

I can picture QT come 2030 ...

No, we've not managed to <insert election pledge here> however that's in large part due to clearing up the mess left by the Tories in 2025.

Same excuses, different party.

 

[Brigadier]

This is what will be very interesting to watch should Labour get in come the next GE i.e. how effectively and quickly they sort out all the stuff they say they would manage better than the Tories.

I can picture QT come 2030 ...

No, we've not managed to <insert election pledge here> however that's in large part due to clearing up the mess left by the Tories in 2025.

Same excuses, different party.

I don't doubt you.

That said, we know that the Tories are a useless, lying, self-serving shower.

You're speculating that Labour may be the same.

Do you bet on a certain loss, or on the flip of a coin instead?

 

[diy_fun_uk]

I don't doubt you.

That said, we know that the Tories are a useless, lying, self-serving shower.

You're speculating that Labour may be the same.

Do you bet on a certain loss, or on the flip of a coin instead?

I agree it's time for a change, in a democracy (please no lectures from anyone re do we actually live in one) it's not healthy for a party to be in power for 10+ years, we face the same thing up here with the SNP. They can't even get a few ferries built on time and in budget!

 

[motorbiking]

How is getting your buddies to write the rules so that you dodge tax, tax-dodging?

Remember those MPs claiming expenses for house furnishings, rent, and duck ponds?

"But it was in the rules" they said.

Who wrote those rules?

Gordon brown.

Entrepreneurs’ Relief was introduced during 2008, under the Labour Government of Gordon Brown and then Chancellor Alastair Darling. Its introduction incentivised entrepreneurs by reducing the level of capital gains tax (20% → 10%) payable on the eventual sale of their business(es) or shares within their unlisted trading company. The amount of relief available on the sale proceeds was initially restricted to a lifetime limit of £1 million, which applies to each individual and not per business. This would quickly expand to reach a lifetime limit of £10 million, effective from 6th April 2011 through to 11th March 2020. Rishi Sunak delivered a significant cutback to the amount of relief available, which reverts back to the original £1 million mark for the scheme now known as Business Asset Disposal Relief (BADR).