Morgan Hemp Blog

Just how many of the super-rich are fleeing the UK over tax hikes?

Friday, August 1, 2025

Concerns over Chancellor Rachel Reeves’ tax policy shift, scrapping tax benefits for non-domiciled residents (non-doms),
has prompted concern amongst high earners. Legal experts warn that UK-based wealthy individuals – not just non-doms – are now considering leaving the UK to reduce their tax liabilities.

Some believe the policy change could cost the Treasury up to £12.2 billion by 2030, despite increased scrutiny from HMRC, especially around statutory residence tests and claims of full-time
overseas work, to ensure the correct amount of tax is collected.

However, claims…

Billions paid into cash ISAs

Friday, August 1, 2025

UK savers deposited a record £14 billion into cash ISAs in April 2024, the highest monthly figure since ISAs were introduced in 1999.
The surge is attributed to fears of potential changes to ISA rules under Chancellor Rachel Reeves.

Speculation arose that Ms. Reeves might reduce the tax-free allowance for cash ISAs. Although she confirmed the £20,000 annual ISA limit will remain, she hinted at curbing the cash portion
to encourage investment in stocks and shares.

Ms. Reeves aims to boost economic growth by shifting savings…

Tax raid pulls in £300 million less than predicted

Friday, August 1, 2025

Chancellor Rachel Reeves’s £25 billion National Insurance hike brought in £300 million less than expected in its first two months. PAYE
income tax and employer NI contributions totalled £37.2 billion in May – up 9.5% from last year but £200 million below forecast.

May borrowing hit £17.7 billion, exceeding the OBR forecast by £600 million and up £700 million from last year. Despite higher tax receipts (£82.5 billion in May), spending outpaced revenue
due to inflation-linked benefit increases and running costs.

Given the shortfall in expected…

“Time for a wealth tax”, say the rich.

Friday, August 1, 2025

The 2025 Sunday Times Rich List reveals that a small group of 350 families
control £772 billion in wealth – enough to fund the UK’s annual healthcare budget three times over.

The group Patriotic Millionaires is urging the UK government to introduce a wealth tax to address inequality and invest in public
services like the NHS. Julia Davies, a member of the group, argues that concerns over billionaires leaving the UK are misplaced and
that focus should shift to real issues like healthcare.

Here’s a structured…

Reeves urged to launch tax raid on landlords

Monday, June 30, 2025

Labour MPs and influential advisers are urging Chancellor Rachel Reeves to ‘launch a tax raid’ on
landlords as part of efforts to fill a fiscal gap without breaking the party’s manifesto commitment against increasing taxes on ‘working people’.

There are three proposed tax measures:

– Charging National Insurance on Rental Income:
Unlike most earnings (from employment or self-employment), rental income is classified as passive and isn’t subject to National Insurance. Imposing NI on
it would align landlords’ income closer to other forms of employment earnings.

-…

Reeves under pressure to create wealth tax

Monday, June 30, 2025

The financial pressures facing Chancellor Rachel Reeves continue to mount, particularly
regarding a projected £57 billion shortfall in the country’s finances.

Public sentiment is shifting towards tax increases on wealthier individuals, with 48% in a recent poll (by BMG Research) supporting higher income
taxes on those earning over £125,000. 29% backed a rise in capital gains tax whilst 26% supported an increase in corporation tax.

Alternative tax proposals include a 2% annual levy on assets over £10 million, which it is claimed could generate £24 billion…

The Government refuses to increase the annual Personal Allowance to £20,000

Monday, June 30, 2025

Parliament debated a petition calling for the income tax threshold to be raised from £12,570 to £20,000 to allow people to keep more of their earnings. The petition, signed
by over 250,000 people, was spearheaded by pensioner Alan Frost, who described it as a “cry for help.”

MPs acknowledged concerns over increasing tax burdens on low earners and pensioners but stated that raising the threshold would cost between £40 billion to £90 billion
annually. Labour’s James Murray, Exchequer Secretary to the Treasury, rejected the proposal,…

Inheritance tax break that could lure expats back to the UK

Monday, June 30, 2025

Changes introduced by Chancellor Rachel Reeves on April 6 mean Britons who have lived abroad for 10
years are no longer subject to UK inheritance tax on their global assets.

The ‘non-dom’ tax regime (the previous system allowing UK residents to avoid tax on foreign income) has been replaced by residency-based taxation.
This means that those who have spent a decade overseas can return to the UK for up to nine years without being liable for inheritance tax on their worldwide assets.
Any UK assets…

HMRC’s ‘Help for Hustles’ Campaign

Monday, June 2, 2025

This is a recent initiative by HMRC. The campaign is designed to assist individuals
who earn extra income outside their main job, ensuring they understand their tax obligations. HMRC set up this initiative as more people have
taken on ‘side hustles’ to help them through the cost-of-living crisis but may not be aware of the tax implications.

If someone earns more than £1,000 annually from their side hustle, HMRC may classify it as ‘trading,’ meaning they might need to pay tax. This
would also mean…

Changes to notifications by employers to operate PAYE on a proportion of a globally mobile employee’s income and Overseas Workday Relief

Monday, June 2, 2025

The previous non-domicile rules regarding operating PAYE on a reduced percentage of an employee’s
income (known as Section 690) ended, replaced by a system based on tax residence. Any HMRC directions issued before 6 April 2025 are no longer valid –
employers must submit a new notification to operate PAYE on a reduced amount for the 2025-2026 tax year.

Employers can now notify HMRC of a specified proportion of income that will not be treated as PAYE income for globally mobile or non-resident employees.
Payments…