Corbyn forcing people to move money offshore before Election Day
Wealthy individuals are fearful that Jeremy Corbyn will be the next Prime Minister of the United Kingdom causing their wealth and the value of GBP to depreciate. As such these individuals have opted to transfer their money offshore ahead of the general election on 12 December 2019.
These individuals are favouring Swiss banks, with recent reports showing the increase in money moving to Switzerland. In addition, individuals have accounts on standby for Election Day.
What happens if Labour win?
If Labour were successful, it is likely that revenue would drop as the wealthy ‘non-doms’ (who contribute vastly to the UK purse) exit the UK. Their contribution to the UK’s tax revenue dropped by £2bn by the end of last year, this could drop further if Labour come into office.
According to Mark Davies it is not wealthy UK residents only having thoughts about opening offshore accounts, it’s everyone who has interests overseas. These individuals are concerned about currency controls.
Treats of Currency Controls
We were told that these controls weren’t going to be executed, but if Labour do come into power then they may well be implemented.
These controls have an impact on currency exchange, investments and even how much money you can take on vacation. Greece introduced these restrictions for 50 months!
What tax related changes will be made?
Labour have proposed the following tax policies:
- IHT to be removed and replaced with ‘Lifetime gifts tax’. This would give an individual £125k instead of the current ‘Nil rate band’ of £325k. Family home allowance will be demolished. This could have a real impact on married couples who would lose up to £875k of tax breaks.
- Capital gains tax to only be at one band rate of 28%.
- Lower the threshold of income tax, so more of the public pay 45% tax on their income and to also introduce a 50% tax rate for those who earn higher salaries