Would you leave UK if Reeves starts taxing wealth

[Movingmarble]

Just that really. Wondering if anyone else considering it. DCs both at Uni in next year. We had thought of living abroad a few months each year anyway but now UK is getting worse and worse for tax. Not super wealthy but millionaires on paper and with various investments. Been to advisor and would have IHT bill of £1 mill + if we stayed which makes me so angry. Worked hard for so many years to provide for our family and feels too harsh.
Spoke to our eldest about this and she even said so many of her friends have parents who have moved abroad in last few years. We are lucky we have options for countries, feels hard but then a flight is actually fast than driving up and down to where DC are at Uni so makes me wonder.....

Feel so fed up the constant threats to those who have saved for future and not got into debt through spending on material things or holidays, tech etc etc....

How the fuck would you have an IHT bill of over a million?

there’s so many exemptions the damn thing is basically optional at this point.

do some tax planning.

No.

Already been and exploring trusts etc etc but right now if one of us dies and leave it all to the other then yes that amount.

Am inheritance tax bill of over a million? Hmm.

I mean... If you want to leave, leave. No-one is stopping you. Personally if I were very wealthy I would count my blessings and stay because I like this country, and I like living near my family and friends.

Why don't you just get married to avoid that IHT?

And no, I am a total povvo so have no wealth.

Well who knows the details at this point.

France’s socialist party are talking about a 2% levy on wealth over €100m. I suspect UK’s threshold will be a lot more modest ! I’d be off like a shot if I was still in UK. I guess net worth also over the £1m mark (former family home, investment property (my first flat before we married), pensions, isas).

definitely extremely comfortable but not a fucking chance I’d be paying more tax when I was already paying higher rate tax on 60% of my gross salary to afford a house in a shit part of zone 4 london with a drug dealer in permanent residence at my tube station and 3 week waits to see a GP.

no thanks!

@Octavia64 I think the OP hasn’t done that just yet because she’s not that old. We all know there are some things that can help but getting your head around it is very difficult. How much do you give away and when? When should you use a trust? What should it entail?

To pay £1m you would need £2.5m of taxable assets - at the moment. This could change in the budget. The tax on houses is very much up for grabs and could be a sales tax which is swingeing for the elderly who have owned a property for a long time. It will be that or staying put and paying IHT. Hopefully financial advisers can help!

It’s also difficult to plan when you don’t know what your needs will be either. However yes, the OP needs financial advice.

I'm not rich enough for it to affect me , however I think you're underestimating the high level of tax in other countries

Gosh that’s a big inheritance you will receive if that’s the tax bill and how exactly did you work for that ?

No

Yes still going through various options but with house and another property and pensions facing this choice.... obviously annoyed others but feel annoyed that 40% could cost us this when worked hard and saved and already been taxed on income. How is that fair?

You not married then?

Im not in the wealth bracket to move, nor do I have options of places that would take me.

I think, but dont know, that im the sort of person thst wants to make where I am better because it is home to me, and I would struggle to go somewhere low tax that was very poor on human rights in comparison.

But I dont know what options you are considering. They might be better on human rights or same tax but you get more out of it like functioning services.

So you have over £3 million in assets but won't pay £100 to get married? You are bonkers.

Look carefully at what taxes other countries apply. Spain is not all it's cracked up to be, I paid inheritance tax when my husband died on his part ownership of a jointly owned property and money held in Spanish bank. I reduced this, significantly, by not informing them of the death for 4.5 years.

No. Even if I had any wealth! I assume you’d go to Dubai or some such hell hole, as most European rich people will likely still pay more than the uk.
I can’t get excited about any sort of inheritance tax either. Inheriting is a bonus. It’s not something you earn.
Anyway, most of us aren’t loaded enough to be affected and since us middle earners pay shedloads of tax when rich people simply hoard assets I’m in favour of some kind of wealth tax.

I wouldn’t move, no. If you have plenty of cash, the UK is a wonderful place to live in my opinion. I can’t think of anywhere I would rather live.

Start spending the money. And I mean seriously spending it, if the kids are at uni, buy houses in their names.

How old are you? I really wouldn’t worry about it, unless there is someone else you really want to go?

Are your parents and in-laws alive? Is your pot of cash likely to get bigger? Or have you already inherited?

Would not leave as business family friends and home is here
Have moved some jobs and most of the company to Asia where the cost of employing staff with increased NI - pensions - increase in corp tax meant we would need to make an additional 400K profit (not turnover but actual profit) to make the same money as previously
Was a hideous decision but we felt a necessary one
Have also moved money abroad

Where does it say they aren't married? I thought they were talking about the IHT bill when their children inherit.

Another wealthy person moaning about having to pay tax. My heart bleeds for you. Oh, and only dead people pay IHT

She says if one dies and leaves it all to the other they pay £1m

Sounds like you have enough money to live where you choose so why not do that? No one is forcing you out. You seem to have the luxury of choice (yes yes you worked for it before anyone points it out!). Where would make you happiest? Do you have a dream place you’d like to live in which case why not try it?

I will never have wealth but if I did, I would prioritise where I WANTED to be and could live whatever lifestyle I chose. likely I’d stay in the UK as being close to family and friends can be priceless.

As for IHT, I don’t see anything wrong with it. I would make taxation fairer by not taxing work more than unearned income. Going out to work income shouldn’t be more than passive income.

A wealth tax on houses would be insane IMO. So, in other words, they'll probaby do it. Who decides what a house is worth? Is the tax on what you own of the house if you have a mortgage, or the total 'value' of the house? What about a modest house in London which can be worth a million or more compared to a million pound house somewhere else?

To answer your question, OP, yes we are considering moving. We are in the to 10% of household income (the top 10% pay 60% of all taxes) and i am sick and tired of the rhetoric 'broadest shoulders'. We are contributing here there and everywhere and this government treats us like we are the enemy. As I saw on another thread- this government has commenced hostilities towards a whole sector of their population. Those who work hard. Those who have savings. Those who have been fiscally prudent and lucky. I am not saying that those who have a lower household income don't work hard or save, of course they do. But the Government is bleeding people dry here.

I am going to my home country in early January in order to start househunting. We hope to stay until our eldest finishes school (he's in year 11) but frankly if the November budget brings what is being speculated about we'd say fuck it and move earlier. I used to want the UK to be my final home. But we are in an era where the Government actively punishes us for being net contributors.

No, but I will if enough bigoted idiots vote for Farage in a GE. Hopefully it won't come to that.

Spoke to our eldest about this and she even said so many of her friends have parents who have moved abroad in last few years

So they were leaving when the Tories were in? Why? @Movingmarble