The rich may pack up and leave the UK

**Morpheous** · 04-22-2009, 05:57 PM

Re: Rich may pack up and leave the UK

You also have to take into account those earning say 37,000. They will have to pay an axtra 650pa. (£54pm). Some may overlook it but it will affect many who are living on credit given their income & expenditure commitments. In any case higher taxes is not good news.

**Amberal37** · 04-22-2009, 05:59 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">UK government have just raised tax from the already too high 40% on income btween £37,000pa - £100,000pa; to 45% for those on income upto £100,000pa !!!

They have also raised tax to 50% for those earning over £1500,000!!!

This will worsen the UK already weakened economy as the rich will pack their bags and go where the tax breaks are more forgiving on their pockets - loss of more jobs and investments will be the result.

In the G20 thread I told you guys britain had nothing to offer or sell whilst hosting G20 meeting. In that meeting the british governmenmt concluded and came clean and said they have no money what so ever to put into the global push to solve the international financial crisis. Bank of england and the tresury confirmed this. Now the rich will flee with their money.

</div></div>

Just being pedantic, but think you mean above income of 150,000GBP(£).

Indeed...the question IS 'where will they go' - personally I think the UK is a great base for free enterprise, although overall quality of life is poorer than the average EU country, that is where it will lose out to those earning less tha 250K. Wealthier ones will still want the public school education, and can have their second homes elsewhere - where they do already anyway.
They are probably safe insofar as the recession lasts, as most major economies are in a poor state, so people know for now that they might be jumping from the proverbial frying pan into the fire.

They have already looked at the tax haven loopholes for the super-rich, and other europpean countries are have far less enticing entrepreneurial premise (i.e. ease of starting a business), transportation, skills base is high in the UK (contrary to UK residents popular opinion), an open market, stable political structure, its wide inclusive migrant base, burdens on business and general operating costs are also much lower in the UK than in other developed countries. Take for example day to day taxes such as VAT, which is the lowest in Europe and offers the (possibly) most exemptions, rate I pay here is more that 20%, plus high stealth taxes in other areas. There are also other tax loopholes to exploit in the UK, so I can imagine the 50% is a headline figure. Overally would have been more competitive if they left it nominally below 50%, say, to 48%

**RichD** · 04-22-2009, 06:00 PM

Re: Rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">You also have to take into account those earning say 37,000. They will have to pay an axtra 650pa. (£54pm). Some may overlook it but it will affect many who are living on credit given their income & expenditure commitments. </div></div> how did you arrive at that calculation?

are all the lower marginal rates going up too?

**Morpheous** · 04-22-2009, 06:06 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: amberal37</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">They have also raised tax to 50% for <span style="font-weight: bold">those earning over £1500,000</span>!!! </div></div>

Just being pedantic, but think you mean above income of 150,000GBP(£).
</div></div>
No worries

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: amberal37</div><div class="ubbcode-body">
Indeed...the question IS 'where will they go' - personally I think the UK is a great base for free enterprise, although overall quality of life is poorer than the average EU country, that is where it will lose out to those earning less tha 250K. Wealthier ones will still want the public school education, and can have their second homes elsewhere - where they do already anyway.
They are probably safe insofar as the recession lasts, as most major economies are in a poor state, so people know for now that they might be jumping from the proverbial frying pan into the fire.

They have already looked at the tax haven loopholes for the super-rich, and other europpean countries are have far less enticing entrepreneurial premise (i.e. ease of starting a business), transportation, skills base is high in the UK (contrary to UK residents popular opinion), an open market, stable political structure, its wide inclusive migrant base, burdens on business and general operating costs are also much lower in the UK than in other developed countries. Take for example day to day taxes such as VAT, which is the lowest in Europe and offers the (possibly) most exemptions, rate I pay here is more that 20%, plus high stealth taxes in other areas. There are also other tax loopholes to exploit in the UK, so I can imagine the 50% is a headline figure. Overally would have been more competitive if they left it nominally below 50%, say, to 48%
</div></div>

We will wait and see...

**evanovitch** · 04-22-2009, 06:07 PM

Re: The rich may pack up and leave the UK

the noveau riche might pack it in but the old money will neva leave...where else will they find the archaic class system which makes them retain position ....plus di noveau riche waiting fi see wich of di ole money dem can buy into

afta all, Britain's tax system has always been onerous..but the right school accent plus money has allowed former colonists who mek money to slide een via a wedding etc

**Morpheous** · 04-22-2009, 06:11 PM

Re: Rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">You also have to take into account those earning say 37,000. They will have to pay an axtra 650pa. (£54pm). Some may overlook it but it will affect many who are living on credit given their income & expenditure commitments. </div></div> how did you arrive at that calculation?

are all the lower marginal rates going up too? </div></div>

Between £37,000 - upwards was 40%
Now between £37,000 - £150,000 is 45%
Over £150,000 is 50%

**Amberal37** · 04-22-2009, 06:13 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">UK government have just raised tax from the already too high 40% on income btween £37,000pa - £100,000pa; to 45% for those on income upto £100,000pa !!! </div></div>

The rate for those earning over 37400 has not changed from 40% there is only one extra band added - that is the 50% for those earning above 150k

**Morpheous** · 04-22-2009, 06:14 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: evanovitch</div><div class="ubbcode-body">the noveau riche might pack it in but the old money will neva leave...where else will they find the archaic class system which makes them retain position ....plus di noveau riche waiting fi see wich of di ole money dem can buy into

afta all, Britain's tax system has always been onerous..but the right school accent plus money has allowed former colonists who mek money to slide een via a wedding etc </div></div>
I hear yuh LOL

**RichD** · 04-22-2009, 06:15 PM

Re: Rich may pack up and leave the UK

so by my calculation somebody earning 40k would pay an additional 150 per year in taxes

sombody earning 37k would pay no addition taxes

**Gen** · 04-22-2009, 06:15 PM

Re: The rich may pack up and leave the UK

the UK is like the US there will be a way to tax UK citizens on their "worldwide income" regardless of where they move. and UK will still hunt yuh dung if yuh try a ting wid tax shelters/tax havens.

**Morpheous** · 04-22-2009, 06:17 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: amberal37</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">UK government have just raised tax from the already too high 40% on income btween £37,000pa - £100,000pa; to 45% for those on income upto £100,000pa !!! </div></div>

The rate for those earning over 37400 has not changed from 40% there is only one extra band added - that is the 50% for those earning above 150k
</div></div>

There is a rise from 40% to 45% tax for earnings upto 150,000 and 50% for anything over £150,000.
Mek a guh check it again in case I'm mistaken.

<span style="font-weight: bold">Edited after checking:</span>
Yes you're right, the proposed tax rise was first 45% then that was changed to 50%. The news read that bit of info wrong though on the TV.

**Amberal37** · 04-22-2009, 06:27 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: More4us</div><div class="ubbcode-body">There is a rise from 40% to 45% tax for earnings upto 150,000 and 50% for anything over £150,000.
Mek a guh check it again in case I'm mistaken. </div></div>

Here's a link in the times, but the only 45% i say in that income group will be from year 2011 - well they might be voted out by then...
Times

**Morpheous** · 04-22-2009, 06:30 PM

Re: The rich may pack up and leave the UK

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Alistair Darling announced plans to increase the rate of income tax for those earning more than £150,000 from 40 per cent to 45 per cent from 2011 in November’s Pre-Budget Report, a move that he said would net the country’s coffers about £1.6 billion. </div></div>

<span style="font-weight: bold">Source:</span>

The rich may pack up and leave the UK

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

ads