BUDGET 2009 = 2010: TIME TO LEAVE THE UK? Let's be clear, the higher rate tax band in 2010 on earned income above £150,000 is 51% and not 50%. In 2011 it goes up to 51.5%. For those earning more than £100,000 marginal tax rates will exceed 60%! That's placing the UK amongst the highest income taxing countries in Europe. Unearned income, such as rental income will be taxed at 50%, penalising property investors already reeling from the drop in property values. Unapproved share options will be taxed at 59.5%! The solution for Clients in the past has been UK approved tax shelters. Many of these, such as Film Partnerships are no longer available! Enterprise Zones, Flats above Shops and Renovation of Commercial Buildings , VCT's and EIS are amongst the remaining few . The majority of these tax shelters, with the exception of VCT's and EIS (which have commercial risks!), have been rendered ineffective by the collapse of the property market in the UK and unlikely to make commercial sense in April 2010! So, the most effective way of avoiding the tax hike for those who are earning significant amounts above £150,000, who have capital, or who can operate from anywhere else, is to leave the UK. Strategic Tax Planning Partnership has many years specialising in the area of Residence and Domicile planning. We can advise on taking up Residence in Switzerland, Spain, France, Ireland, Cyprus, Monaco, Malta and Israel and many other locations where, with careful planning, limited or low tax bills are achievable. In addition, we are uniquely placed to assist your Clients with the complex, new and growing set of requirements to secure non-UK Residence (particularly so, after the win for the HMRC in the High Court case of HMRC-v-Grace in November last year). We have extensive experience of advising High Net Worth Individuals on relocating to either pure tax havens or countries with special tax arrangements that limit tax. We can also tax plan into seemingly high tax countries such as France, Holland or even Spain!
Daniel is a Barrister (Non-Practicing) who is Senior Partner of Strategic Tax Planning Partnership, a Tax Law Consultancy covering UK, International and Offshore Tax Planning. Daniel also advises on…
