Tory Leadership Race

[ajohn]

Where did you go?

To a banana republic as they are often tax havens.

 

[motorbiking]

Like the EU you mean.

 

[carmanmemoranda]

I suggest you do some research to see how an estate worth say £20m would be impact under labours proposed changes.

They taking all £20m ?

If not, then you would still be better off than before

 

[carmanmemoranda]

You understand that is just your opinion.

No I think it's obvious to most

 

[Notch7]

Like the EU you mean.

It’s not a tax haven

 

[motorbiking]

I think you will find plenty are. If you look.

 

[motorbiking]

They taking all £20m ?

If not, then you would still be better off than before

Imagine Carman Senior leaves you his £20M international car recovery empire. It is made up of many fixed assets which cannot easily be liquidated, most of the value is the good will and strong brand and performance of the company derived from the balance sheet. Previously you may have qualified for some exemptions (e.g. BPR), but now we have new leaders with new ideas and they want their money. You're a high earner, so the government decide you should pay 45% IHT. You cannot find a buyer for the business and instead opt to defer the tax. Word gets out that Carman Junior is not the business mastermind that Carman senior was, costs mount, customers walk, suppliers take the pi** and slowly the value of the business falls. After a few years the business is worth £12M. The problem Carman Junior has is that he owes 45% of £20M + interest at 7.5%.

I think you can manage the sums to see that you are short a few mill.

Now imagine a software company or high tech start up, these firms can drop 50% in a few weeks.

 

[carmanmemoranda]

Imagine Carman Senior leaves you his £20M international car recovery empire. It is made up of many fixed assets which cannot easily be liquidated, most of the value is the good will and strong brand and performance of the company derived from the balance sheet. Previously you may have qualified for some exemptions, but now we have new leaders with new ideas and they want their money. You're a high earner, so the government decide you should pay 45% IHT. You cannot find a buyer for the business and instead opt to defer the tax. Word gets out that Carman Junior is not the business mastermind that Carman senior was, costs mount, customers walk, suppliers take the pi** and slowly the value of the business falls. After a few years the business is worth £12M. The problem Carman Junior has is that he owes 45% of £20M + interest at 7.5%.

I think you can manage the sums to see that you are short a few mill.

It's a hard life if you can't afford someone to sort that out for you. Sounds like it wasn't worth the claimed value.

Try running a small business and get to know what real cash flow problems are like !

 

[motorbiking]

The someone to sort it out.. is advising you leave for a country that has less draconian tax obligations. Its money for old rope as he can sell the same advice to many 1000s of high wealth individuals.

 

[motorbiking]

It's a hard life if you can't afford someone to sort that out for you. Sounds like it wasn't worth the claimed value.

Try running a small business and get to know what real cash flow problems are like !

why do you have cash flow problems? (genuine question)

 

[denso13]

but now we have new leaders with new ideas and they want their money

What new ideas?

 

[motorbiking]

There are plenty of tax experts blogging about it.

Ending Property and Business Relief for example

 

[denso13]

There are plenty of tax experts blogging about it.

That doesn't make it Labour policy.

The one you linked to says they are implementing the change to non-dom status in line with the tory plans announcement last year.

 

[JohnD]

There are plenty of people whining that they might have to pay some tax.
And so are the professionals who are paid to look after their interests.

Who could have seen that coming?

 

[denso13]

Ending Property and Business Relief for example

And some say it should be limited to £500,000 per person, for example.