Should Rachel Reeves target offshore ownership of residential properties?

[vladi]

There is a case to be made for Rachel Reeves  increasing taxes in this area  whilst also closing some of the loopholes. She has a free hand as offshore companies don't have a vote in a general election.

There are about 65,000 medium to high value residential properties in the UK that are owned by offshore companies. In the majority of cases the reason for this is primarily tax avoidance.

Offshore ownership has distinct tax advantages in relation to Stamp Duty Land Tax (SDLT). A similar situation exists with Inheritance Tax. But significantly also, it protects assets from local creditors, lawsuits, or bankruptcy proceedings.

Where such property is rented out then there are also tax advantages such as offsetting mortgage interest and other items. Then there's corporation tax of 25% compared to 40% for a private  individual in the higher tax band.

Not forgetting that the proceeds of crime are accumulated in offshore trusts and companies.

[malumbu]

The worry is that if you target rich people (a) it doesn't generate a lot of revenue as numbers are relatively small it (b) supposedly drives away investors in the UK economy.

Obviously for the reasons above it is the right thing to do on principle.

The other way round I was vaguely involved many years ago in work looking at how big companies were shifting profit into offshore accounts, the usual suspects BVI, Bermuda and the like.

And there's those that argue that is the nature of things to support our pension funds and investments and make the UK an attractive place to manage your money.

[Guest]

What has happened to the rest of this thread? Where's it gone? Who asked for it to be taken down?

Disgraceful

[Sephiroth]

Haha The Man is in on everything.  Cover up!!!!!

 

and oh look that word “disgraceful” again 

 

It’s more likely to be cock up than conspiracy 

[Jenijenjen]

I think there is some confusion about two threads that start "Rachel Reeves ...", the other one is older and longer. 

[Guest]

So a spin and clarification on Vladi's earlier thread, mnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn

[CPR Dave]

Sure, let's go for "offshore" owners of any kind of business too whilst we're at it. 

We're an island. We don't need money from offshore criminals. 

We can all live on benefits and go on strike when when the onshore government wages the job centre pays are too low .