Super Loopholes for the Super Rich? It Ain’t Necessarily So
HMCR has, for the first time, published the true figures for tax avoidance* by the UK's mega-wealthy.
The findings revealed almost 1 in 10 people earning £10million or more per year are paying less than the 20% basic income tax rate.
And that figure increases up to 25% for the high net worth individuals (HNWIs) who pay less than 40% tax.
But is tax avoidance a risky strategy, and is there a better way?
First, while often not in the "true spirit of the law" tax avoidance schemes - essentially loopholes - can be legal but can also carry a higher likelihood of eventual audit.
The vast majority find the tax avoidance endgame means paying it all back, albeit some years in the future, in addition to the accountant's fees.
Second, there is an inherent expectation that the uber-wealthy are somehow privy to special tax advice and treatment reserved for, well, the uber-wealthy.
But like the lyrics from George and Ira Gershwin's famous musical opera Porgy and Bess:"It ain't necessarily so".
The problem remains that the rich and not-so-rich alike are focused on avoidance and wealth protection instead of better investment practices to achieve both aims.
Those familiar with the Treasury's now patent response to any usurpers of its holier-than-ever tax system; a crackdown, would suggest HMRC warnings are an empty war cry designed to vilify the wealthy and through fear, bolster the public purse.
Or worse, that the Treasury can not enforce its authority due to more internal austerity experience and loss of resources than the PIIGS Euro-nations consortium will ever know.
Don't be fooled by that.
There are better ways to legally protect and grow your wealth while retaining access to your money and minimising tax burdens.
Call us to find out how - 01506 842 365
* HMRC figures for the 2010/2011 tax year published 16th April 2012