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Election 2024: Initial comments on potential tax changes

The country has voted in a new Labour Government. What tax changes might this bring? Members of CB’s Private Wealth team provide their initial thoughts:

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Published 5 July 2024

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Peter Daniel comments: 

No one will be surprised that Labour have won the election easily. What remains to be seen is whether the new Government spring any tax surprises. The tax changes Labour have said they will introduce in their first Budget are relatively few, and Keir Starmer says his focus on growth. But the public finances remain precarious, and tax will need to be raised from somewhere.

Beyond the expected non-dom tax changes – which are likely to be more a political statement than revenue-raising – there are suggestions that Labour are considering much further-reaching tax changes, including in particular to IHT and CGT.

Tulin Hamit comments: 

This landslide Labour majority indicates that the British population really want to see change.  Change can be disconcerting from a tax planning perspective. This is particularly relevant bearing in mind the legislative changes noted in the Labour manifesto regarding the so called “loopholes” in relation to offshore trust and carried interest taxation. 

However, these comments in the manifesto may have been made in order to gain a political advantage. 

It will be interesting to see whether a Labour government now take a step back and assess the position wholistically in order to consider whether the effect of these changes are actually beneficial.  It is possible or even likely that the changes could have a catastrophic effect on the London equity markets for foreign investors and London could lose its place as a financial world leader.

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Shorter Reads

Election 2024: Initial comments on potential tax changes

The country has voted in a new Labour Government. What tax changes might this bring? Members of CB’s Private Wealth team provide their initial thoughts:

Published 5 July 2024

Associated sectors / services

Authors

Peter Daniel comments: 

No one will be surprised that Labour have won the election easily. What remains to be seen is whether the new Government spring any tax surprises. The tax changes Labour have said they will introduce in their first Budget are relatively few, and Keir Starmer says his focus on growth. But the public finances remain precarious, and tax will need to be raised from somewhere.

Beyond the expected non-dom tax changes – which are likely to be more a political statement than revenue-raising – there are suggestions that Labour are considering much further-reaching tax changes, including in particular to IHT and CGT.

Tulin Hamit comments: 

This landslide Labour majority indicates that the British population really want to see change.  Change can be disconcerting from a tax planning perspective. This is particularly relevant bearing in mind the legislative changes noted in the Labour manifesto regarding the so called “loopholes” in relation to offshore trust and carried interest taxation. 

However, these comments in the manifesto may have been made in order to gain a political advantage. 

It will be interesting to see whether a Labour government now take a step back and assess the position wholistically in order to consider whether the effect of these changes are actually beneficial.  It is possible or even likely that the changes could have a catastrophic effect on the London equity markets for foreign investors and London could lose its place as a financial world leader.

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