Latest news with #tax rises
Telegraph
5 days ago
- Business
- Telegraph
NatWest on high alert over wealthy exodus risk
NatWest executives are on high alert over the potential exit of wealthy customers from Britain after Rachel Reeves's changes to non-dom rules. Paul Thwaite, chief executive, said the bank was monitoring the impact of Labour's policies on rich customers 'very closely' as he suggested tax rises could force its millionaire customers to leave. NatWest owns Coutts, the centuries-old private bank for wealthy individuals. Often referred to as the 'King's bank', it has thousands of rich customers with upwards of £3m in spare savings. Speaking on Friday, Mr Thwaite said: 'We're not at this stage seeing any meaningful change in terms of behaviour, but that customer base is very alive to policy change, be that tax or regulatory. 'We're monitoring very closely, but no meaningful change at this stage.' His comments come as thousands of millionaires have left the UK since Labour entered power last year in the largest exodus of rich people from any country in over a decade. According to research by Henley & Partners, 16,500 high-net-worth individuals will leave the UK this year because of the non-dom abolition by Ms Reeves. An overhaul of Britain's non-dom regime and more stringent inheritance tax rules have made Britain less appealing for wealthy foreigners, with some warning the crackdown risks creating the perception that the UK Government is hostile to wealthy people. Since the changes were introduced a number of high-profile figures have left, including Goldman Sachs' Richard Gnodde, Aston Villa co-owner Nassef Sawiris and Norwegian shipping billionaire John Fredriksen. 'Strong economies need strong banks' There was no obvious sign of stress at NatWest from the changes, with its private banking and wealth management – which includes Coutts – reporting a 44pc rise in half-year operating profit versus a year ago to £201m. 'We're very pleased with the performance of Coutts and the wealth business. It does have some international clients though,' Mr Thwaite said. The Liverpudlian chief, who replaced Dame Alison Rose as chief executive two years ago, also warned that any hit to Britain's banks risks harming the country's economy. He said that Labour should be 'thoughtful about any signals that they can send in respect of policy'. He said: 'My view is strong economies need strong banks. I really want to use the bank's capital to invest in the business and also support customers. 'Ultimately, as I've said, that that will be beneficial to the UK. What's very important, from an investor perspective, is they have consistency, stability and predictability.' NatWest launched a £750m share buyback scheme and said it would pay out another £768m to shareholders as an interim dividend after the bank posted better-than-expected profits.
The Guardian
22-07-2025
- Business
- The Guardian
UK borrowing rises more than expected, putting pressure on Rachel Reeves
The UK government borrowed more than expected in June amid pressure on the chancellor, Rachel Reeves, to repair the public finances. Figures from the Office for National Statistics (ONS) show public sector net borrowing rose to £20.7bn. This was £6.6bn higher than the same month a year earlier and the second-highest June borrowing figure since monthly records began in 1993. City economists had forecast borrowing to increase to £16.5bn. It comes as Reeves prepares for a tough autumn budget amid mounting speculation over the need for large tax rises to cover a multibillion-pound shortfall in the public finances after the government's high-stakes welfare U-turn earlier this month. Ministers have warned of 'financial consequences' after the backtracking on disability benefits and winter fuel payments for pensioners, which will cost more than £6bn. Alongside a sluggish economic outlook and possible downgrade in productivity forecasts from the Office for Budget Responsibility at the autumn budget, economists have warned Reeves could face a £30bn shortfall against her fiscal rules. The UK economy shrank for two consecutive months in April and May, while unemployment and inflation have risen, as businesses and households come under pressure from tax rises, elevated borrowing costs, and global uncertainty amid Donald Trump's trade war. Reeves has faced growing demands from Labour backbenchers, unions and the former party leader Neil Kinnock to consider introducing a wealth tax. However, the chancellor has so far sought to keep her options open while pushing to reassure business leaders that her priority remains driving up economic growth. The Institute for Fiscal Studies said on Monday there was a 'strong case' for the chancellor to tweak her self-imposed rule, which requires day-to-day spending to be matched by receipts by the fifth year of official forecasts. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion More details soon …
Yahoo
14-07-2025
- Business
- Yahoo
Do you trust your partner enough to give them money for tax purposes?
The starting pistol has been fired on tax speculation ahead of the autumn budget. The fact that cutting spending has proved so thorny makes tax rises more likely, in order to balance the books, so the debate is flowing thick and fast about where the pain could be felt, and what people can do to protect themselves. One option is for couples to plan together, and share savings and investments in order to keep their tax bill down. However, this requires some serious trust. If they share everything between them, it means both parties can take advantage of their ISA and pension allowances. If they hold anything on top of this, by splitting it, they might be able to stay within their annual tax-free allowances. If anyone other than married couples or civil partners do this, there could be tax to pay on the transfer — but if they're married, there's no immediate tax bill. Read more: How to start investing with an employee share scheme The good news is that according to research from Hargreaves Lansdown with Opinium, almost three quarters of people trust their spouse enough to share their savings and investments like this, in order to take advantage of tax rules. The more assets someone has, the more likely they are to trust their spouse with some of them — with 79% of savers and 84% of investors saying they would be happy to share assets to save tax. Higher earners are also more prepared to hand over their cash — including 82% of higher rate taxpayers. This will be influenced by the fact they have more to gain from the move. If you don't think you can trust your partner, it pays to listen to your gut, because sharing assets comes with risks. If you've handed money over, you'll have given it away entirely, so you will no longer have any control over it. Your partner will be free to make any decisions they want with it, moving investments or savings, or spending as much as they fancy. You have to ask yourself whether you're prepared to relinquish that control. Read more: How to save money on your council tax bill You also need to appreciate your position if you get divorced. You may be able to come to an agreement about division of assets, or the courts will divide your estate up in a way it believes is fair. However, that doesn't mean you'll get this money back on the grounds it was yours in the first place. Any court will prioritise need and start with equality, so might not see a significant chunk of these assets again. There's also the possibility that an estranged spouse will spend as much of the money as possible, in order to reduce your settlement. It means that while sharing your assets can be a great way to cut your tax bill and save money, it's important to think long and hard about it first. Losing a chunk of money to the taxman is bad enough, but losing all of it to a partner who turns out to be untrustworthy would be even worse. Read more: How much money do you need to retire? How to avoid finance scams on social media Why you can trust an 18-year old with their junior ISA – and how to create one
