Anna Mikhailova of The Sunday Times was kind enough to publish an edited version of my letter this weekend, but in response to people asking for the full unedited version, here it is…
I read with interest Hunter Davies’ frustrations with the process of probate, which served to reinforce the need to overhaul the complete system, starting with scrapping Inheritance Tax (Probate Seems the Hardest Word, Sunday Times, Money, 29.5.16)
Mr Davies’ experience highlights the high wire act HMRC expect savers and nest-egg builders to traverse with plenty of jeopardy, but little or no reward. Is anyone, therefore, surprised that people are tempted to take their assets offshore?
I believe Inheritance Tax costs the UK economy massively and one of the main reasons why offshore tax havens have become so appealing. However, the EU referendum presents a unique opportunity to turn the tables in favour of the UK.
If Inheritance Tax was removed and Brexit activated, the UK create an environment to become a ‘legal’ offshore haven, which would attract non-resident investors from a myriad of countries keen on a location with world-class infrastructure and exceptionally strong laws and legal system.
As part of this approach, remembering that many of those who have the resources to invest are business owners or directors, the UK could also remove Corporation Tax in favour of a fee-based system for international businesses, as I pay for my company in Dubai, which would encourage even more investment in the UK.
However, while a draconian HMRC continues to tie up UK residents up in knots with its probate system and outdated Inheritance Tax, what chance do we have of attracting anyone from outside Britain to invest their hard-earned savings here?
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