Latest news with #wealthtax
Yahoo
6 hours ago
- Business
- Yahoo
The wealthy seaside idyll facing a tidal wave of taxes
Along the coastal roads in Sandbanks, luxury homes with carefully curated gardens line the streets. The sound of saws and hammers is almost constant as wealthy residents carry out lavish refurbishments, with some going as far as knocking down seafront houses to rebuild them all over again. However, this could all be about to change as Rachel Reeves considers raising taxes to fix Britain's strained public finances, with those with the broadest shoulders likely to bear the brunt. According to Adrian and Robert Dunford, who run the high-end local estate agency Tailor Made, residents of Britain's most sought-after postcode are already fearful. 'Most of our wealthy clients are older, and all of them can remember a Labour government,' says Adrian. 'Not the Blair government, but a true Labour government. The reality is that there is an expectation that the wealthy do tend to be focused on.' Nestled on a peninsula between Poole and Bournemouth along the south coast of England, with its golden sand beach, Sandbanks has long seemed the perfect place to retire. But for how long is another matter as a looming wealth tax threatens to trigger a fresh exodus of the rich from Britain, following on from the Government's non-dom tax raid earlier this year. 'It's a bit of a split market,' says Adrian. 'When I speak to wealthy individuals, some are just leaving the country and are fairly negative with regards to what is going on in the UK. Whereas others say they are happy to pay their tax and remain here.' 'We want to at least get back what we paid' The affluent neighbourhood, nicknamed Britain's Palm Springs, has long had the reputation of being a millionaire's playground, counting the likes of former footballer manager Harry Redknapp and chef Rick Stein among its residents. Lynn Conway is another, having moved to the area four years ago with her husband. However, she is now prepared to sell her £1.5m property in Sandbanks once the housing market picks up. Average property prices in Sandbanks have fallen 3pc to £1.3m in the past 12 months, according to Rightmove, as prospective buyers weigh up the impact of stamp duty charges and rising council tax levies on second homes. 'At the moment, we don't want to put anything on because we want to at least get back what we paid,' she says. 'If we sell ours and make £100,000 on it, it's going to cost us that to move with the extra stamp duty. So we're going to stay put for the time being.' It comes as Reeves is largely expected to raise taxes in the autumn to meet a budget shortfall potentially worth up to £20bn. Conway says it would be a 'real worry' if the Chancellor were to implement further tax increases. 'My husband retired in 2019, but we had Covid and the market all changed, so he's having to carry on working just to cover the mortgage here,' she says. Even in this wealthy corner of England, surrounded by multimillion-pound homes, the tax burden is still a concern. Lola May Massingham, the owner of luxury estate agent Prime Coastal Properties, says there are fewer wealthy buyers from London, Surrey and overseas because higher taxes and increased stamp duty rates are 'deterring investment'. 'It's not incentivising somebody that's worked their whole life to have a second home,' she says. 'I'm talking about business people who watch what the economy is doing, so they're going to be nervous.' About half of Massingham's buyers are looking for second homes in Sandbanks and the surrounding area, with many of Bournemouth FC's footballers interested in renting or buying in secluded neighbourhoods nearby. But as wealthy Britons consider whether to pack up and move overseas, Massingham says that the Reeves's decision to tighten non-dom rules risks pushing people abroad. 'We've seen people leave already' This is a particular threat as countries overseas seek to attract rich homeowners with lower taxes. For example, one of her clients who owns a manor in Hampshire is already exploring a move to Spain. Alongside non-dom changes and wealth tax fears, complaints have also been made regarding changes by the local council. From April 1, local authorities in England were given the power to charge a double tax premium on second homes under laws passed by the previous Conservative government. The Liberal Democrat-run council for Bournemouth, Christchurch and Poole brought the change into force, increasing the levy for properties in the most costly band from £4,509.88 to £9,019.76. 'I have been really hit by the increase in council tax,' says Jayne Kearney. 'It's now double, which makes it much more expensive owning a second home. 'I love this area and I've loved it since I was a child. It's kind of the price you pay for owning a second home.' The end to the stamp duty holiday in April is also a sore point. Kevin Webb, a resident of nearby Canford Cliffs, warned that high levels of the tax were scaring off prospective buyers. 'It's a ridiculous level you have to pay in stamp duty, absolutely ridiculous,' he says. Back at Tailor Made estate agents, glossy photos of multimillion-pound homes on the market across Sandbanks glisten in the office windows. Yet for some, the appeal of staying in the UK has lost its shine. 'We've seen people leave already,' says Adrian. 'Or just base themselves outside of the UK and come back to do their 90 days.' If this trend is anything to go by, more taxes in autumn will make the Sandbanks exodus a whole lot worse. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
10 hours ago
- Business
- Telegraph
The 26 MPs calling for a wealth tax vote ahead of Labour's Budget
MPs have called for a debate on a so-called 'wealth tax' ahead of the autumn Budget amid surging borrowing costs. Fourteen Labour MPs are among 26 members of Parliament who on Monday signed an early day motion (EDM) in support of an annual levy of 2pc on individual assets over £10m. EDMs are typically used by MPs to express support for a particular policy, and are one of the first steps towards an official debate. The 26 MPs – who also included six Independents, four Plaid Cymru MPs and one Alliance MP – said that a wealth tax could raise an estimated £24bn a year, a tempting figure given the increase in Government borrowing to £20.7bn in June. This higher-than-anticipated figure has raised chances of tax rises in the Budget as Chancellor Rachel Reeves seeks to plug a growing deficit. Cabinet ministers have so far played down the chances of a wealth tax being implemented, with one saying it was 'off the table'. The MPs' statement read: 'That such a measure would represent a fairer alternative to cuts and could provide urgently needed resources to tackle the poverty and inequality that blights our society – and calls on the Government to bring forward proposals for such a tax on extreme wealth ahead of the next Budget.' Labour MPs Richard Burgon, Imran Hussain, Bell Ribeiro-Addy, Kate Osborne, Kim Johnson and Ian Byrne have sponsored the motion. Of the six Independent MPs who signed the document, five have previously been Labour MPs, including Rachael Maskell, Neil Duncan-Jordan and Brian Leishman, who had the whip removed earlier this month. Ms Maskell said: 'Increasingly, those with the highest levels of wealth are deriving their income from investments and assets, and yet their tax burden is inequitable. 'A wealth tax of 2pc on assets over £10m is popular, and is a first step in recognising progressive means of contributing to our country's future at a time when we need investment.' Mr Leishman MP added: 'There are grotesque levels of inequality in Britain, the sixth largest economy in the world. 'It does not have to be this way. We should be redistributing wealth and power across society for the benefit of the many. 'While the Government has taken some welcome steps in the right direction, addressing non-dom status and imposing VAT on private school fees, these policies do not come close enough to tackling the gross inequalities the working class faces today.' The motion was also backed by MPs including Diane Abbott, who was this month sanctioned for standing by comments in which she implied that the racism experienced by Jewish people was less significant than other forms of racism. Vocal Corbyn supporters, Apsana Begum and John McDonnell, put their names to the motion, alongside Alliance MP, Sorcha Eastwood, and four Plaid Cymru MPs, including Ben Lake, Llinos Medi, Liz Saville Roberts and Ann Davies. Some of Labour's biggest names, including Lord Kinnock, have advocated for a wealth tax. Ahead of this year's Spring Statement, Patriotic Millionaires, a campaign group which has long called for higher taxes for the super-rich, said that 80pc of UK-based millionaires would support a wealth tax. But The Times reported earlier this week that Ms Reeves was resisting calls for the implementation of such a levy, with Cabinet ministers calling it a 'non-starter'. Eight countries have previously implemented wealth taxes, including Austria, Denmark, Germany, Finland, Iceland, Luxembourg, Sweden and France, only to scrap them. Just four countries, Norway, Spain, Switzerland and Colombia still have a wealth tax. Dawn Butler, who is set to run in the 2028 contest for London Mayor, also backed the motion alongside Clive Lewis, Cat Eccles, Jon Trickett, Steve Witherden, Ian Lavery, Rebecca Long-Bailey, Grahame Morris and Imran Hussain. In March, Ms Butler said a wealth tax would be a better way to bring in money than cutting public services. She said: 'That is a better way to bring money in to help fill the black hole that we have found ourselves in because of the disaster of 14 years of Tory government.' Plaid Cymru MP, Ann Davies, said: 'An overwhelming majority of people across the UK support a 2pc wealth tax on assets over £10m. It's time Labour started listening. 'People are still struggling with the cost of living crisis, and our public services are on their knees. Yet, Labour continues to target those least able to shoulder the burden, from cutting disability benefits to slashing pensioners' winter fuel payments. 'A wealth tax offers a genuine opportunity to tackle the deepening inequality in our society.' A Treasury spokesman said: 'The best way to strengthen public finances is by growing the economy – which is our focus. Changes to tax and spend policy are not the only ways of doing this. 'We are committed to keeping taxes for working people as low as possible.'
Telegraph
15 hours ago
- Business
- Telegraph
The wealthy seaside idyll facing a tidal wave of taxes
Along the coastal roads in Sandbanks, luxury homes with carefully curated gardens line the streets. The sound of saws and hammers is almost constant as wealthy residents carry out lavish refurbishments, with some going as far as knocking down seafront houses to rebuild them all over again. However, this could all be about to change as Rachel Reeves considers raising taxes to fix Britain's strained public finances, with those with the broadest shoulders likely to bear the brunt. According to Adrian and Robert Dunford, who run the high-end local estate agency Tailor Made, residents of Britain's most sought-after postcode are already fearful. 'Most of our wealthy clients are older, and all of them can remember a Labour government,' says Adrian. 'Not the Blair government, but a true Labour government. The reality is that there is an expectation that the wealthy do tend to be focused on.' Nestled on a peninsula between Poole and Bournemouth along the south coast of England, with its golden sand beach, Sandbanks has long seemed the perfect place to retire. But for how long is another matter as a looming wealth tax threatens to trigger a fresh exodus of the rich from Britain, following on from the Government's non-dom tax raid earlier this year. 'It's a bit of a split market,' says Adrian. 'When I speak to wealthy individuals, some are just leaving the country and are fairly negative with regards to what is going on in the UK. Whereas others say they are happy to pay their tax and remain here.' 'We want to at least get back what we paid' The affluent neighbourhood, nicknamed Britain's Palm Springs, has long had the reputation of being a millionaire's playground, counting the likes of former footballer manager Harry Redknapp and chef Rick Stein among its residents. Lynn Conway is another, having moved to the area four years ago with her husband. However, she is now prepared to sell her £1.5m property in Sandbanks once the housing market picks up. Average property prices in Sandbanks have fallen 3pc to £1.3m in the past 12 months, according to Rightmove, as prospective buyers weigh up the impact of stamp duty charges and rising council tax levies on second homes. 'At the moment, we don't want to put anything on because we want to at least get back what we paid,' she says. 'If we sell ours and make £100,000 on it, it's going to cost us that to move with the extra stamp duty. So we're going to stay put for the time being.' It comes as Reeves is largely expected to raise taxes in the autumn to meet a budget shortfall potentially worth up to £20bn. Conway says it would be a 'real worry' if the Chancellor were to implement further tax increases. 'My husband retired in 2019, but we had Covid and the market all changed, so he's having to carry on working just to cover the mortgage here,' she says. Even in this wealthy corner of England, surrounded by multimillion-pound homes, the tax burden is still a concern. Lola May Massingham, the owner of luxury estate agent Prime Coastal Properties, says there are fewer wealthy buyers from London, Surrey and overseas because higher taxes and increased stamp duty rates are 'deterring investment'. 'It's not incentivising somebody that's worked their whole life to have a second home,' she says. 'I'm talking about business people who watch what the economy is doing, so they're going to be nervous.' About half of Massingham's buyers are looking for second homes in Sandbanks and the surrounding area, with many of Bournemouth FC's footballers interested in renting or buying in secluded neighbourhoods nearby. But as wealthy Britons consider whether to pack up and move overseas, Massingham says that the Reeves's decision to tighten non-dom rules risks pushing people abroad. 'We've seen people leave already' This is a particular threat as countries overseas seek to attract rich homeowners with lower taxes. For example, one of her clients who owns a manor in Hampshire is already exploring a move to Spain. Alongside non-dom changes and wealth tax fears, complaints have also been made regarding changes by the local council. From April 1, local authorities in England were given the power to charge a double tax premium on second homes under laws passed by the previous Conservative government. The Liberal Democrat-run council for Bournemouth, Christchurch and Poole brought the change into force, increasing the levy for properties in the most costly band from £4,509.88 to £9,019.76. 'I have been really hit by the increase in council tax,' says Jayne Kearney. 'It's now double, which makes it much more expensive owning a second home. 'I love this area and I've loved it since I was a child. It's kind of the price you pay for owning a second home.' The end to the stamp duty holiday in April is also a sore point. Kevin Webb, a resident of nearby Canford Cliffs, warned that high levels of the tax were scaring off prospective buyers. 'It's a ridiculous level you have to pay in stamp duty, absolutely ridiculous,' he says. Back at Tailor Made estate agents, glossy photos of multimillion-pound homes on the market across Sandbanks glisten in the office windows. Yet for some, the appeal of staying in the UK has lost its shine. 'We've seen people leave already,' says Adrian. 'Or just base themselves outside of the UK and come back to do their 90 days.' If this trend is anything to go by, more taxes in autumn will make the Sandbanks exodus a whole lot worse.
Times
a day ago
- Business
- Times
Why would I want a wealth tax, Rachel Reeves, when I want to be rich?
The chancellor, Rachel Reeves, has refused to rule out the prospect of a 'wealth tax', which, as I understand it, would affect those with more than £10 million in assets. That's loopy, to my mind. Or, to put it another way, if having more than £10 million is so spectacularly evil, why do I want £10 million (and rising) more than anything else on earth? It looks splendid. Indeed, as I would shout from my yacht, or house with circular drive: 'This is splendid! Highly recommend!' Obviously I wouldn't go on about no longer having to park on the straight drive otherwise known as 'the street'. I wouldn't wish to rub people's faces in it. I'm not a monster. And I've had many happy years parking on 'the street' where my car has either been nicked or gone over. • Rachel Reeves refuses to rule out wealth tax despite fresh warnings The last time it was gone over the perpetrator took a pair of Wellington boots but left a crack pipe behind on the back seat, so I think that made us even-stevens. But the bottom line is that those socialist types who argue that accruing vast wealth is somehow wrong are missing one important fact: I would really love it. 'I really love this!' I would also shout. 'Park wherever!' I may host a ball. I may host a party in Venice and annoy everyone who lives there. Why not? I'm rich. Although, essentially, I would stay the same. I would keep humble. My friends today, some of whom go way back, would stay my friends, until I dumped them. One would have to be choosy. My yacht, Princess Bora, won't be able to accommodate all and sundry. You can't have anyone and everyone turning up expecting to park on your circular drive. They're circular, circular drives, but not endless. And I would have to make space for Orlando Bloom and Tom Cruise and the Kardashians, who seem to turn up wherever any rich person is to be found, even though they don't go far back and barely know them. 'Orlando, Tom, Kim, park wherever!' It'll be epic. It will be terrific. Katy Perry, she'll be along, just you wait and see. I may even purchase a private island, bus other millionaires and billionaires out there, and fill it with sexual playthings. Why not? I'm rich. As for my family? Honestly, I don't know if they'd be up to it. It pains me to say it but it's true. We've not had a single 'rift' to date so are they even capable of a rift? I sometimes want to shake them while saying: 'What does one have to do to get a rift up and running around here?' Imagine how embarrassing it'll be mingling with the Beckhams, say, without a single rift to your name. I'd probably even decline David and Victoria's invitations because I wouldn't wish to turn up with no rift to give them. The shame that none of my kids has had the good sense to marry someone I don't like. So my family are an issue. I don't even know if they have it in them to tear each other's throats out over a will when I'm gone. How sad, to leave behind a family with nothing to tear each other'sthroats out for. Just an old car with an inherited crack pipe on the back seat. I can't bear the thought of it. Meanwhile, I may buy X and shout abuse day and night. Why not? I'm rich. People will want to hear the horrible things I have to say. This is why I don't have any truck with anyone who says wealth should be more evenly spread, because what they are not factoring in is how brilliant it would be if I had a decent chunk of it. And, having come from nothing, I do truly believe I'd stay grounded. I certainly wouldn't call upon my staff in the middle of the night unless it was an emergency and I felt like a small bowl of ice cream or a tickle. I would still come into the office once in a blue moon or possibly never. And it goes without saying I will inevitably pop up in that box at Wimbledon while those who can less afford it have to buy their tickets. Why not? I'm rich. Highly recommend. As it is my birthday next week I thought I'd release a video like the one released for Prince George's 12th birthday. He's a cutie, that little fella, but I am a cutie too, let's not forget. I think it's even why, the other day, a young woman offered me her seat on the bus. • Photo and video released for Prince George's 12th birthday This level of cuteness can't be left to stand, she was probably thinking. That video is lovely and mine will, I hope, be lovely too. I've yet to approach my siblings about walking across a sunny field in Norfolk hand-in-hand but I can't see why they'd demur. True, my brother, when we were little, would not hold any of his sisters' hands. Or, if he was forced to, would pull his jumper sleeve down so he wouldn't 'catch something'. I don't know how I'm going to talk him into a friendship bracelet. He'll just have to go with it. 'We need to look happy and natural,' I will tell him, while pulling up his jumper sleeve. I think he'll be into leaning on a rustic gate, though. My sister and I will, probably, be wearing very sweet cardigans that will instantly sell out. I do love the royal birthday video. It's an adorable way to give back to the public and, as you know, I'm all about giving back. I would give back the crack pipe if I knew whence it came. And we are all as cute as Prince Louis, that's for sure. It's the missing teeth.
Telegraph
2 days ago
- Business
- Telegraph
A wealth tax looks dead in the water. Reeves has other options
Finally, the proponents of a wealth tax have so far focused on lazy, big-picture claims that overlook the details of how such a tax would work. What assets would it be levied on? Would just UK assets or worldwide ones be in scope? How would it be collected? Could HMRC even do it? The Treasury has done a lot of thinking about how to tax wealth more and is well aware that to be effective, any tax increase on the very rich has to be almost impossible to avoid. I suspect once they got into the details, they would swiftly work out that this type of levy would be easily dodged. That's the good news. The bad news is that the Treasury certainly has views on how and why tax on wealth should be increased. Work will be underway to give the Chancellor a menu of options that mean she can dismiss this specific proposal as unworkable while pleasing backbenchers with an alternative tax raid on wealth. When I was at the Treasury, there were frequent mutterings from officials about the unfairness of taxing labour more than capital, and a lot of work looking at how to tackle intergenerational issues through inheritance tax and property taxes. I suspect this will be dusted down and presented as the answer to the Chancellor's fiscal and political problems. What might a wealth tax raid that isn't a wealth tax look like? The big area of focus will be property. Officials are very taken with the premise that recurring taxes on immovable property are the best way to increase the amount the wealthiest pay. So, if they want to work within the current system, we could see changes to council tax. Despite being delayed a bit, the Labour Government in Wales is committed to a council tax revaluation that Westminster could replicate. This would be done under the guise of fairness and would result in more expensive homes paying higher council tax. Alternatively, the Government could opt to add a new council tax band under existing valuations. A mansion tax like this might raise a few billion. More radical would be reform of the Primary Residence Relief (PRR) that exempts family homes from capital gains tax. This relief costs nearly £40bn a year, so even restricting it in a small way, such as levying it only on homes worth over £2m, might raise a few billion. PRR appeared on a list of options in the run-up to the Autumn Statement of 2022, but Jeremy Hunt, the then chancellor, had no intention of going near such an explosive policy. His successor may well view the idea differently. I would be surprised to see anything as complicated as this, but initial work was started last year on replacing all of our current property taxes (council tax, stamp duty and capital gains tax on property) with a new annual property levy. There has been no pitch rolling for this sort of approach, so I suspect moves will be limited to reforming council tax or PRR, plus some tinkering with stamp duty. More straightforward would be simple increases to capital gains, inheritance and dividend taxes. All of which could be dressed up as taxing the wealthy and could raise an extra few billion in combination. Increasing dividend tax and capital gains tax further towards income tax rates would certainly appeal to the Treasury's instincts that capital should not be taxed much less than labour. All of which means we may well see a specific new wealth tax ruled out more formally. But that does not mean a suite of wealth taxes isn't on the cards for the autumn Budget.
