Latest news with #IHT
Gulf Today
7 hours ago
- Business
- Gulf Today
Starmer and Reeves have much work still to do
Chris Blackhurst, The Independent Rachel Reeves is to water down plans scrapping her non-dom tax rules amid concerns about the number of wealthy individuals deserting the UK. It must be true, because it's being repeated everywhere — complete with a bland, non-denial from the Treasury: "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 in the UK." A key item under discussion is said to be the proposal to make non-doms' worldwide assets liable to inheritance tax, or IHT, including those held in foreign trusts. There is no doubt many rich people have gone. One analysis by Bloomberg puts the number of company directors who have left at 4,400 in the past year. Examination of Companies House filings shows departures were 75 per cent higher in April than in the same month last year. The worst affected sectors were finance, insurance and property, all of them popular with non-doms. In the most expensive areas of London, stories abound of shuttered mansions, and a knock-on effect across restaurants, hair and beauty salons, car firms and all the other ancillary services. The UK, once a favoured magnet for the world's billionaires and multi-millionaires, has fallen off its perch. A recent Oxford Economics survey found that 60 per cent of tax advisers expect more than 40 per cent of their non-dom clients to leave within two years of Reeves ending their beneficial status. With them will go their families, close staff - and their money. It was the latter that made previous governments, including Labour, seek to attract them in the first place. If they base themselves in Britain, they are more likely to spend and to invest here. That is why other nations are doing their level best to woo them. It's what the Treasury means when it refers to the new regime being "internationally competitive". What is bizarre and shaming is that this administration did not see it coming. Seemingly, ministers did not realise that non-doms would quit. They did not appreciate that, in today's world, rich people can move freely and easily and work from anywhere. Either they are guilty of extraordinary unworldliness, deluding themselves that wealthy foreigners would carry on living in the UK merely because they like it here - ignoring the effect on their finances; or they simply did not care, and allowed political ideology to prevail. Whatever the answer, they are now engaged in the sort of reversal and damage limitation exercise which is becoming all too familiar where this government is concerned. The question now is: will it be enough? Already, South Africa's richest self-made woman Magda Wierzycka, the billionaire behind UK venture capital fund Braavos, has stated she will shelve plans to leave should the chancellor U-turn on IHT: "I would absolutely stay and it's not about protecting my money from the tax man. I pay all my taxes, but South Africa has foreign exchange controls and I don't know whether [my estate] would be able to pay the IHT bill under the current rules." Whether others are so persuaded, and if Reeves does pull back entirely on IHT, remains to be seen. The problem for her and for Keir Starmer is that the tone has been set. Even if they do climb down, the feeling persists that this iteration of Labour (as opposed to that of Tony Blair, which famously declared it was "intensely relaxed about people getting filthy rich") cannot abide well-off people. The purging of the non-doms followed a pattern. It joined VAT on private schools, the removal of the winter fuel allowance, hitting farmers with their own new IHT bills, and other measures, aimed at the more advantaged end of society. They can afford it, appeared to be Downing Street 's view. That will be hard to shake-off. The hope must be that the attractions of the UK will weigh heavily and the non-doms will not exit and some, many even, will return. Starmer and Reeves, having set their calamitous course, have much work still to do.
North Wales Chronicle
2 days ago
- Business
- North Wales Chronicle
Aim boss makes plea to boost market's appeal after inheritance tax blow
Marcus Stuttard, head of Aim and UK primary markets at the London Stock Exchange, urged the Government to reinstate 'financial incentives' for Aim investors after last autumn's Budget revealed plans to slash inheritance tax (IHT) relief on Aim-listed stock from 100% to 50% from April next year. Aim has suffered a raft of firms quitting the market in recent years as part of a wider shift away from London towards overseas rivals and as firms are bought out by foreign competitors or taken private. More than 60 firms – with a market cap of over £12 billion – have already announced plans to leave Aim in 2025 as they look to move to the main market, delist or are bought out. As Aim celebrates its 30th anniversary on Thursday, Mr Stuttard told the PA news agency that the Government can help stop the outflow of firms on London's beleaguered market, with 'more companies leaving than joining in the last two years'. He said the cut to IHT relief was a major blow. 'One hundred per cent relief has been and used to be really important to Aim,' he said. 'We are calling on the Government to make sure there's certainty… with financial incentives to support Aim.' He also backed Government plans to increase pension fund investment in UK stocks, saying it was crucial that 'domestic investors back our domestic economy'. He told PA: 'International investors understand the quality of our small businesses – we need our own pension funds to be backing that opportunity. 'It's vital that our UK pension funds back the UK economy.' The Aim – or Alternative Investment Market – was launched in June 1995 to give small and medium-sized firms access to capital. In the 30 years since, it has admitted more than 4,000 companies and raised over £136 billion. There were about 1,700 businesses listed on Aim in 2007, but this has dwindled to fewer than 700. Some of this is down to costs of listing and onerous rules and regulations. Mr Stuttard said the group is working on a discussion paper to ask firms how Aim could change and evolve and what are the current downsides of listing on the market. He said 'nothing is off the table' in terms of what could be looked at, with the market keen to see the consensus for a way forward. He said it is clear there is still a strong need for Aim to help companies get access to capital to grow without resorting to selling. 'From start-up to initial public offering (IPO) to big global business, we want to provide companies with a range of choice of financing options so they don't get sold too early,' according to Mr Stuttard. 'Aim is a really important part of the UK economy and the UK capital markets,' he added.
Leader Live
2 days ago
- Business
- Leader Live
Aim boss makes plea to boost market's appeal after inheritance tax blow
Marcus Stuttard, head of Aim and UK primary markets at the London Stock Exchange, urged the Government to reinstate 'financial incentives' for Aim investors after last autumn's Budget revealed plans to slash inheritance tax (IHT) relief on Aim-listed stock from 100% to 50% from April next year. Aim has suffered a raft of firms quitting the market in recent years as part of a wider shift away from London towards overseas rivals and as firms are bought out by foreign competitors or taken private. More than 60 firms – with a market cap of over £12 billion – have already announced plans to leave Aim in 2025 as they look to move to the main market, delist or are bought out. As Aim celebrates its 30th anniversary on Thursday, Mr Stuttard told the PA news agency that the Government can help stop the outflow of firms on London's beleaguered market, with 'more companies leaving than joining in the last two years'. He said the cut to IHT relief was a major blow. 'One hundred per cent relief has been and used to be really important to Aim,' he said. 'We are calling on the Government to make sure there's certainty… with financial incentives to support Aim.' He also backed Government plans to increase pension fund investment in UK stocks, saying it was crucial that 'domestic investors back our domestic economy'. He told PA: 'International investors understand the quality of our small businesses – we need our own pension funds to be backing that opportunity. 'It's vital that our UK pension funds back the UK economy.' The Aim – or Alternative Investment Market – was launched in June 1995 to give small and medium-sized firms access to capital. In the 30 years since, it has admitted more than 4,000 companies and raised over £136 billion. There were about 1,700 businesses listed on Aim in 2007, but this has dwindled to fewer than 700. Some of this is down to costs of listing and onerous rules and regulations. Mr Stuttard said the group is working on a discussion paper to ask firms how Aim could change and evolve and what are the current downsides of listing on the market. He said 'nothing is off the table' in terms of what could be looked at, with the market keen to see the consensus for a way forward. He said it is clear there is still a strong need for Aim to help companies get access to capital to grow without resorting to selling. 'From start-up to initial public offering (IPO) to big global business, we want to provide companies with a range of choice of financing options so they don't get sold too early,' according to Mr Stuttard. 'Aim is a really important part of the UK economy and the UK capital markets,' he added.
South Wales Guardian
2 days ago
- Business
- South Wales Guardian
Aim boss makes plea to boost market's appeal after inheritance tax blow
Marcus Stuttard, head of Aim and UK primary markets at the London Stock Exchange, urged the Government to reinstate 'financial incentives' for Aim investors after last autumn's Budget revealed plans to slash inheritance tax (IHT) relief on Aim-listed stock from 100% to 50% from April next year. Aim has suffered a raft of firms quitting the market in recent years as part of a wider shift away from London towards overseas rivals and as firms are bought out by foreign competitors or taken private. More than 60 firms – with a market cap of over £12 billion – have already announced plans to leave Aim in 2025 as they look to move to the main market, delist or are bought out. As Aim celebrates its 30th anniversary on Thursday, Mr Stuttard told the PA news agency that the Government can help stop the outflow of firms on London's beleaguered market, with 'more companies leaving than joining in the last two years'. He said the cut to IHT relief was a major blow. 'One hundred per cent relief has been and used to be really important to Aim,' he said. 'We are calling on the Government to make sure there's certainty… with financial incentives to support Aim.' He also backed Government plans to increase pension fund investment in UK stocks, saying it was crucial that 'domestic investors back our domestic economy'. He told PA: 'International investors understand the quality of our small businesses – we need our own pension funds to be backing that opportunity. 'It's vital that our UK pension funds back the UK economy.' The Aim – or Alternative Investment Market – was launched in June 1995 to give small and medium-sized firms access to capital. In the 30 years since, it has admitted more than 4,000 companies and raised over £136 billion. There were about 1,700 businesses listed on Aim in 2007, but this has dwindled to fewer than 700. Some of this is down to costs of listing and onerous rules and regulations. Mr Stuttard said the group is working on a discussion paper to ask firms how Aim could change and evolve and what are the current downsides of listing on the market. He said 'nothing is off the table' in terms of what could be looked at, with the market keen to see the consensus for a way forward. He said it is clear there is still a strong need for Aim to help companies get access to capital to grow without resorting to selling. 'From start-up to initial public offering (IPO) to big global business, we want to provide companies with a range of choice of financing options so they don't get sold too early,' according to Mr Stuttard. 'Aim is a really important part of the UK economy and the UK capital markets,' he added.
South Wales Argus
2 days ago
- Business
- South Wales Argus
Aim boss makes plea to boost market's appeal after inheritance tax blow
Marcus Stuttard, head of Aim and UK primary markets at the London Stock Exchange, urged the Government to reinstate 'financial incentives' for Aim investors after last autumn's Budget revealed plans to slash inheritance tax (IHT) relief on Aim-listed stock from 100% to 50% from April next year. Aim has suffered a raft of firms quitting the market in recent years as part of a wider shift away from London towards overseas rivals and as firms are bought out by foreign competitors or taken private. More than 60 firms – with a market cap of over £12 billion – have already announced plans to leave Aim in 2025 as they look to move to the main market, delist or are bought out. As Aim celebrates its 30th anniversary on Thursday, Mr Stuttard told the PA news agency that the Government can help stop the outflow of firms on London's beleaguered market, with 'more companies leaving than joining in the last two years'. He said the cut to IHT relief was a major blow. 'One hundred per cent relief has been and used to be really important to Aim,' he said. 'We are calling on the Government to make sure there's certainty… with financial incentives to support Aim.' He also backed Government plans to increase pension fund investment in UK stocks, saying it was crucial that 'domestic investors back our domestic economy'. He told PA: 'International investors understand the quality of our small businesses – we need our own pension funds to be backing that opportunity. 'It's vital that our UK pension funds back the UK economy.' The Aim – or Alternative Investment Market – was launched in June 1995 to give small and medium-sized firms access to capital. In the 30 years since, it has admitted more than 4,000 companies and raised over £136 billion. There were about 1,700 businesses listed on Aim in 2007, but this has dwindled to fewer than 700. Some of this is down to costs of listing and onerous rules and regulations. Mr Stuttard said the group is working on a discussion paper to ask firms how Aim could change and evolve and what are the current downsides of listing on the market. He said 'nothing is off the table' in terms of what could be looked at, with the market keen to see the consensus for a way forward. He said it is clear there is still a strong need for Aim to help companies get access to capital to grow without resorting to selling. 'From start-up to initial public offering (IPO) to big global business, we want to provide companies with a range of choice of financing options so they don't get sold too early,' according to Mr Stuttard. 'Aim is a really important part of the UK economy and the UK capital markets,' he added.
