I'm a tax accountant for the very wealthy AMA

[LadyGodivaRidesAgain]

I do not ride horses naked though. :)

How much wealth are we talking?

£20m to £1bn.

£50m to £400m.

Are people making plans for a Labour govt and what are they? Are there any countries your clients are planning to head to in worst case scenario? I have a mate insists she is heading to Bahamas, not sure if she is barking mad or super-organised.

People are making plans but only a minority. The US in most popular place of choice. Most are resigned to a Labour government but do not believe it can happen if Corbin in power.
They vary between £40m-£200m.

How did they all get so rich? 😄 do you see a disproportionate amount of X job, or old family money, etc?

How can you live with yourself knowing that some of these obscenely rich people would be happy to put money elsewhere and duck out of helping the worse off, you know, the little issue of homelessness, hunger and a falling apart NHS.

What is their tax strategy of choice ? Do many of them invest in companies as a tax reduction mechanism ?

How are they structuring their wealth with a view to passing it on to their children ?

Do many of your clients get involved in philanthropy ?

Are many of them very tight ?!

How did they all get so rich? 😄 do you see a disproportionate amount of X job, or old family money, etc?

Some from inheritance but more so these days from hard work, luck, and opportunity. The greatest wealth created today is via science and technology.

How can you live with yourself knowing that some of these obscenely rich people would be happy to put money elsewhere and duck out of helping the worse off, you know, the little issue of homelessness, hunger and a falling apart NHS.

The wealthiest pay the greatest amounts of tax. Most are terrified of not paying enough. There will always be the odd one though, of course. Many have reputations to lose, but mostly they respect a country that has given them opportunity and allowed them to succeed. Wealth pays for hospitals, schools and other things. There is no point in putting money 'elsewhere' these days. Swiss bankers will make more.

You would be amazed at the type of person who puts the greatest effort into dodging tax.

What is their tax strategy of choice ? Do many of them invest in companies as a tax reduction mechanism ?

They reinvest in other successful businesses, yes. Or they use trusts, or go overseas. Or simply pay tax. There, that one may surprise you.

How are they structuring their wealth with a view to passing it on to their children ?

They leave it as late as possible. Their biggest concern is spoiling children who may then struggle to cope with the world. They want them grounded and not falling for gold diggers or lazy husbands.

Do many of your clients get involved in philanthropy ?

Nearly all to some degree.

Are many of them very tight ?!

You get the odd one or two, but mostly they need to understand what or how they are investing in whenever they make a business decision or fund a charity. I have one client who spends the same money each year on food, clothes, a holiday and domestic costs - about £20k per annum. Her grandchildren all have had help towards university and starter homes and will inherit a sizable sum each. She also gives about £50k a year to various charities in the UK and poor countries. Born the only daughter of a frugal shopkeeper.

Thank you for replying. I appreciate that

A generalisation obviously - but what amount do you think having money tips over into making life harder not more pleasant?

What do you think is the ideal net worth amount?

The wealthiest pay the greatest amounts of tax.

This is true in the US as well. Last year the top 10% of earners paid a bit more than 70% of the total income tax collected. And the myth persists here too that many of them have managed to dodge paying taxes.

Summary of the Latest Federal Income Tax Data, 2017 Update

I am quite thankful for the wealthy and their philanthropy. Our finest hospitals (I'm in health care) are non profit teaching hospitals and heavily endowed by philanthropists. The medical research that makes possible is extraordinary.

A generalisation obviously - but what amount do you think having money tips over into making life harder not more pleasant?

£4m. Enough to make a difference in your lifetime and enough to leave a legacy for others. More than £20m becomes almost a business in itself. But you are right, it is a generalisation. I would never need even £4m for example.

What do you think is the ideal net worth amount?

£4m at 60. On death about £0.00. Can't take it with us.

How many of the rich you deal with need security?
Not thinking bodyguards only very effective home security systems with lockdown rooms etc.?

How many of the rich you deal with need security?
Not thinking bodyguards only very effective home security systems with lockdown rooms etc.?

None I know anymore than anyone else. Depends on the location really. Two have physical security in the form of bodyguards, but houses vary. A country estate, dogs are perceived to do the trick.

One family, who made a lot of money in IT trained every member in self defence and advanced driving. You would not think they were wealthy if you saw their car or passed them in the street.

Oh £4m. That's interesting. Lower than I thought - but yes I can see how above even that (relatively!!!) low amount generates work in itself.

Thanks. That's helpful. Although in a largely theoretical way.

I might bring down my financial goal from £100 mill then and give myself the afternoon off...

People are making plans but only a minority. The US in most popular place of choice.

Is that mostly due to the more favorable tax rules and rates or out of concern that the peasants will store the castle in the event of a no deal brexit and the resulting economic chaos?

Is that mostly due to the more favorable tax rules and rates or out of concern that the peasants will store the castle in the event of a no deal brexit and the resulting economic chaos?

The US is favoured mostly because of the opportunities there with tax rates not being so important. In fact, taking into account sales taxes the US can be quite expensive. Death duties are payable only by the very wealthy compared to a tax-free allowance at only £325,000 in the UK.

I do not know what you mean about peasants storming the castle. Can't help you with that one.

I do not know what you mean about peasants storming the castle. Can't help you with that one.

It was a bit of a joke about the anxiety over the economic effects of brexit if a deal can't be reached.

I'm a bit confused by your reference to sales taxes. Did you mean retail sales taxes that you'd pay in a shop or buying a new car or something else, like capital gains taxes on the sale of appreciated assets? We don't have VAT here as I'm sure you know.

Retail sales taxes vary by state and municipality and range roughly between 5% and 9%. Lots of things are exempted from the tax, like real property and most professional services for example.

How many of your clients do you really like?
As people I mean, rather than as good clients or just being well-mannered.

I deal with many very rich people (law) and I dislike all almost all of them.

Do many of your clients get involved in philanthropy ?

Nearly all to some degree.

Do they grant the money freely or are conditions attached?

Who are the most likely to dodge tax?

Know anything about IOM tax?