Tony Byrne, of Wealth & Tax Management, warns that whatever the result business should brace itself for bad news.
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IF YOU read this article hot off the press, the General Election will have already happened.
Whichever of the two main parties is elected, Labour or Conservatives, it will be bad news for most businesses. Why?
Under the Conservatives, the government has built massive debt – £400 billion from the Covid-19 global pandemic alone – and this debt has to be repaid whichever government is in power. That means higher taxes. We already have the highest taxes in Britain since the 1950s under a Conservative government. Historically Labour has always taxed us even more heavily so if Labour is elected (which is highly likely) then taxes will rise even more than under the Conservatives.
The types of businesses likely to thrive under a Labour government are ones dependent on government contracts and ones that adhere to the Net Zero agenda. Labour is an even bigger supporter of Net Zero than the Conservatives with Ed Milliband the Shadow Secretary of State for Energy Security and Net Zero since 2021.
On the other hand, businesses involved in the fossil fuel industry are likely to struggle under a Labour administration.
What about the rest of us? Well, I expect taxation to rise very steeply. It wouldn’t surprise me in the slightest if the top rate of Income Tax were to rise to 98% again like in the seventies under a Labour government.
What’s the solution? Emigrate to a tax haven where taxes are low, the government is friendly towards businesses and entrepreneurs and the weather is better! Join the brain drain from the UK and become a digital nomad instead.
That’s certainly what I intend to do.
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If you are interested in advice on how to reduce the negative impact of the General Election result on your business, whynot take advantage of a one-hour Discovery Meeting either at our offices or via a video conference call at our expense worth £270 to each of the first three readers who contact us before 31 July 2024? You know it makes sense. We offer a great cup of coffee too!
Ring us on 01908 523740 or for free on 0800 980 4516 or email wealth@wealthandtax.co.uk and quote JULY 2024OFFER to book your free discovery meeting.
RISK WARNING The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. All information is based on our current understanding of taxation, legislation, regulations and case law in the current tax year. Any levels and bases of relief from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. This article is based on my own observations and opinions.
