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Sledgehead

City Firms Threaten To Quit London

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From the NewsBlog above I see:

New tax rules will drive us out of London, say big City firms, 14 Aug

According to this the Chancellor wants to end the tax fiddle of "dual contracts" that allows non-UK-domiciled (non-doms) city high-flyers to avoid tax:

The Chancellor announced a review of the tax rules governing non-doms in the 2003 Budget. However, little was done until earlier this year when the Revenue said it had "new legal opinion" that the use of dual contracts was illegal

... and the banks don't like it:

City investment banks have reacted angrily to the change. Through their trade body, the London Investment Banking Association (Liba), they have told the Treasury that it could make it less economic for them to be based in London.

If your aren't a non-dom (or london prop owner), you may see this as comeupance and jolly good news. But it does have wide ranging implications if taken to its logical conclusion.

In a recent thread I drew attention to why wilting consumer spending need not lead to a collapse of the FTSE. The reason: the majority of business conducted by our largest firms is offshore.

This raises an interesting question: why have your headquarters in a country where you do very little business?

The answer is of course money. London is one of the worlds great financial centres. If you want to raise funds and your HQ is in London, the guys you need to talk to are just down the road. This matters immensely.

So here is the rub. Drive the invetsment banks and moneymen out of the UK & London and what do you have left to keep our largest companies in London, and their tax revenue in the country? Les Miz?

Comments please guys & gals.

Edited by Sledgehead

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Hard to say for sure, ive got a feeling that its a kick and scream that will be apeased in a oh so diplomatic fashion. Thier is a prestigue and strategic importance with being in London. We shall see but i dont think we will hear much more about it.

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Hard to say for sure, ive got a feeling that its a kick and scream that will be apeased in a oh so diplomatic fashion. Thier is a prestigue and strategic importance with being in London. We shall see but i dont think we will hear much more about it.

For sure: the stakes, as I see them (above), are just too high.

Perhaps I should have asked whether, in a hypothetical world where Gordy stuck to his tax principles, the consequences could be as dire as I floated.

Given that he will have to bend, it also raises the question of whether he intends to plug the missing taxes from elsewhere. My view is he never believed he'd get a penny more, but he had to be seen to do something. [slightly edited]

Edited by Sledgehead

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Income Tax!

:lol: He will do every thing possible not to increase income tax, he dosnt care if his stealth taxs cripple middle england, but i reakon he would consider it a personal faliure to raise income tax.

Thing is... he might have no choice, them pennies have to come from somewhere :blink:

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One of the fundamental principles of taxation is that it is supposed to be seen to be fair. Non-dom status is blatantly unfair - those making lots of money threaten to go elsewhere if they have to pay the tax rates that everyone else pays. If they're made to pay proper tax, maybe they'll stay, maybe they'll, that's up to them and no doubt they'll do all their calculations first. So be it. I don't like this sort of blackmail.

The other side of the coin is the corrosive effect this sort of behaviour has on everyone else. How many people justify their minor tax "fiddles" by saying if Al Fayed et al are getting away with this, why shouldn't I? If the govt stood up to this sort of behaviour and enforced the law on all of us equally the net result might be higher tax revenues and a stronger economy. The way these City firms behave stinks and I'd like to see our politicians show some backbone in standing up to them.

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One of the fundamental principles of taxation is that it is supposed to be seen to be fair. Non-dom status is blatantly unfair - those making lots of money threaten to go elsewhere if they have to pay the tax rates that everyone else pays. If they're made to pay proper tax, maybe they'll stay, maybe they'll, that's up to them and no doubt they'll do all their calculations first. So be it. I don't like this sort of blackmail.

The other side of the coin is the corrosive effect this sort of behaviour has on everyone else. How many people justify their minor tax "fiddles" by saying if Al Fayed et al are getting away with this, why shouldn't I? If the govt stood up to this sort of behaviour and enforced the law on all of us equally the net result might be higher tax revenues and a stronger economy. The way these City firms behave stinks and I'd like to see our politicians show some backbone in standing up to them.

Munro whilst I think GB is a toad, you speak the truth. These parasites need to pay their share.

'but we're wealth creators they cry'....yes, wealth for themselves and noone else.

'but our spending helps drive the UK economy' - fine, why don't you just give me 10 billion quid a year and I will drive the economy with my spending...the point is, DID YOU EARN THE MONEY YOU HAVE FAIRLY?

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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