Reeves considers softening inheritance tax changes amid non-dom backlash
Rachel Reeves is considering caving in to City lobbying and softening changes to inheritance tax that affect wealthy individuals who would previously have been “non-doms”, reports suggest.In her autumn budget, the chancellor confirmed that she would scrap the non-dom tax status, which allowed wealthy individuals with connections abroad to avoid paying full UK tax on their overseas earnings.“Those that make the UK their home should pay their taxes here,” she said at the time.Her predecessor Jeremy Hunt had already sounded the death knell for non-dom status but Reeves’s changes were expected to raise an additional £12.7bn over five years.
She then announced minor adjustments to the transitional arrangements to the new regime at the Davos summit in January, after a backlash from some wealthy individuals.However, Reeves is reportedly considering modifying changes that came into force in April that make the worldwide assets of all UK residents subject to inheritance tax at 40%, even if these are placed in trusts, according to a report in the Financial Times.Responding to the report, a Treasury spokesperson said: “As the chancellor set out at spring statement, the government will continue to work with stakeholders to ensure the new regime is internationally competitive and continues to focus on attracting the best talent and investment to the UK.”There have been reports of an “exodus” of wealthy individuals from the UK, although these have been questioned by some analysts – including in a recent study from the thinktank the Tax Justice Network.The TJN’s chief executive, Alex Cobham, said: “We’ve only just laid bare the nonsense of one claimed ‘millionaire exodus’ and along comes another – it’s almost as if the lobbyists for not taxing extreme wealth don’t actually care about the evidence.
“The chancellor has access to by far the best data on taxpayers’ decisions, so she will know better than anyone just how little millionaire migration actually takes place.It’s well past time to stop listening to the self-serving fairytales of the City.”Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionWhen it projected the revenue from closing non-dom loopholes at Reeves’s autumn budget, the independent Office for Budget Responsibility allowed for an additional 12%-25% of non-doms to leave the UK this year.However, Reeves is keen to mollify wealthy global investors, as the Treasury is determined to attract foreign investment into the UK as part of its mission to kickstart economic growth.She already faces a challenging fiscal picture in the run-up to the autumn budget, as the OBR is expected to revisit its optimistic productivity forecasts, potentially downgrading growth projections as a result.
Reeves considers softening inheritance tax changes amid non-dom backlash
Rachel Reeves is considering caving in to City lobbying and softening changes to inheritance tax that affect wealthy individuals who would previously have been “non-doms”, reports suggest.In her autumn budget, the chancellor confirmed that she would scrap the non-dom tax status, which allowed wealthy individuals with connections abroad to avoid paying full UK tax on their overseas earnings.“Those that make the UK their home should pay their taxes here,” she said at the time.Her predecessor Jeremy Hunt had already sounded the death knell for non-dom status but Reeves’s changes were expected to raise an additional £12.7bn over five years
Britons in Israel told to notify Foreign Office to receive instructions on how to leave
British people in Israel are being told to register with the Foreign Office so the UK government can assist them if they wish to leave the country.David Lammy, the foreign secretary, told MPs on Monday his department was asking all British nationals to notify the government and receive instructions on how best to leave, after the country closed down its airspace.With Israel and Iran continuing their air attacks against each other, fears are growing for hundreds of thousands of Britons living in the broader region.Lammy told the Commons: “We are asking all British nationals in Israel to register their presence with the FCDO [Foreign Office], so that we can share important information on the situation and leaving the country.“Israel and Iran have closed their airspace until further notice, and our ability therefore to provide support in Iran is extremely limited
Keir Starmer’s biggest U-turns since Labour came to power
Keir Starmer’s mid-air announcement that he was reversing his previous opposition to a national grooming gangs inquiry is the latest in a long line of U-turns that have led allies to worry about a lack of political direction.Before he became prime minister, the Labour leader gained a reputation for U-turning on some of his most significant policies, including spending £28bn a year on green infrastructure and abolishing tuition fees.Since entering government, the pattern has continued, with Starmer having changed his mind on cuts to winter fuel payments and the grooming gangs inquiry within the last few weeks.Here is a list of the biggest policy U-turns – or prospective U-turns – that the prime minister has executed since taking power.When Elon Musk began furiously tweeting about the grooming gangs scandal in January, the prime minister responded robustly
When Starmer speaks, the world listens – or so Labour imagines | John Crace
It was late into the night. The phone rang in the prime minister’s residence in Jerusalem. Benjamin Netanyahu stretched out an arm to take the call.“Yes.”“Hi Bibi, it’s Ali
Cooper says law on rape being tightened so adults cannot use consent as defence against charge of raping child under 16 – as it happened
Cooper says the Casey report makes 12 recommendations, and the government will act on all of them, she says.In line with the first recommendation, the government will tighten the law on rape, she says.Baroness Casey’s first recommendation is we must see children as children. She concludes too many grooming gang cases have been dropped or downgraded from rape to lesser charges because a 13 to 15 year old is perceived to have been in love with or had consented to sex with the perpetrator.So we will change the law to ensure that adults who engage in penetrative sex with a child under 16 face the most serious charge of rape, and we will work closely with the CPS and the police to ensure there are safeguards for consensual teenage relationships
British Council cuts are a false economy that would erode the UK’s global influence | Letters
Soft power takes decades to build and no time to squander. As we ramp up defence spending, it would be incoherent to try to part-pay for it by hollowing out the British Council.The British Council is at the heart of Britain’s global influence – fostering education, English-language skills, cultural exchange and mutual understanding in more than 100 countries.Yet funding pressures and the burden of a £197m loan now mean that it may close its doors in as many as 60 countries (British Council ‘may have to close in 60 countries’ amid cuts to aid budget, 8 June).As the United States retreats and rival states expand their global presence, this is the moment to invest in institutions such as the British Council and the BBC World Service, not to make false economies
Pastry perfection: Anna Higham’s recipes for chicken and herb pie and foldover pissaladière
How to make chocolate chip cookies – recipe | Felicity Cloake's Masterclass
Ragù, Bristol BS1: ‘I recommend it wholly, effusively and slightly enviously’ – restaurant review | Grace Dent on restaurants
Raise a glass to National Beer Day: tips on the perfect pint
Benjamina Ebuehi’s recipe for cherry and honeycomb cheesecake pots | The sweet spot
Ken Don obituary