Wealthy Britons pay 10% more in tax

IronWolf

Who said the government wasnt clamping down on tax evasion

U.K. Treasury chief George Osborne claimed a small victory Monday in his fight to tackle tax evasion, as the country's tax department netted a 10% increase in the revenue it raised from wealthy Britons last year.
The tax department's specialist unit dealing with the tax affairs of the 5,800 wealthiest people in Britain—each of whom have assets in excess of £20 million ($30.5 million)—brought in £220 million in tax revenue in the past tax year, which ended on April 5. This compares with the £200 million raised in 2011-12 tax year

http://online.wsj.com/article/SB10001424127887324874204578436911705743072.html

Old_Slaphead

IronWolf wrote: »

Who said the government wasnt clamping down on tax evasion
http://online.wsj.com/article/SB10001424127887324874204578436911705743072.html

Erm, 5800 x 20mill = £116 bill

Tax of £200mill is less than 0.2% of assets - ie negligible

Somebody got their decimal points in a twist ?????

As a unit of measure, tax take vs assets sounds meaningless

grizzly1911

Old_Slaphead wrote: »

Erm, 5800 x 20mill = £116 bill

Tax of £200mill is less than 0.2% of assets - ie negligible

Somebody got their decimal points in a twist ?????

As a unit of measure, tax take vs assets sounds meaningless

£116bn/5800?


The 1,000 richest people in Britain and Ireland share a wealth of £450bn

http://www.bbc.co.uk/news/uk-22233389

Plenty more to go at.

zygurat789

This would have been at 50%, I wonder if these amounts were included in the famous calculation to prove that less tax was collected because of the 50% additional rate.

IronWolf

£200m to £220m is 10%

nicko33

£220m tax / 5800 people = £38k tax each
Doesn't really sound like all that much tax to be paying

What's wrong with this picture?

lemonjelly

So about 34k each on average, from people worth 20m+.

Great. Really great.

princeofpounds

And the fact is that the really wealthy people never appear as such because the majority of their assets and income are not reportable under tax rules, if they are clever.

For example, many rich people will deposit wealth with banks offshore and borrow from them in the UK to fund their living expenses, appearing only as debtors to HMRC.

kaya

Was it not this month that Cameron gave tax breaks to all his millionaire chums ? Something like £43,000 for each million of Income every year?

angrypirate

Old_Slaphead wrote: »

Erm, 5800 x 20mill = £116 bill

Tax of £200mill is less than 0.2% of assets - ie negligible

Somebody got their decimal points in a twist ?????

As a unit of measure, tax take vs assets sounds meaningless

Last time i checked, you dont pay tax on your assets in this country

princeofpounds

Was it not this month that Cameron gave tax breaks to all his millionaire chums ? Something like £43,000 for each million of Income every year?

It is the beginning of a new tax year and the top tax bracket is moving from 50% to 45% rate, if that's what you mean.

A tax reduction is not a tax break.

And the 50% rate performed very poorly in raising the tax take, perhaps unfortunately.

Last time i checked, you dont pay tax on your assets in this country

Indirectly you can do. Council tax, for instance, is largely asset-based.

In fact, it's a shame in some ways there is not more exploration of this area. It is not always helpful to tax productive (and income-producing) enterprise to death whilst leaving assets well alone.

Income tax acts as a heavy disincentive to wealth creation, employment and enterprise.

Really rich people have minimal income, using company and trust structures to pay for their lifestyles.