Save content
Have you found this content useful? Use the button above to save it to your profile.
Monte Carlo
pixabay_dgazdik_aw

Britain as a tax haven

by
2nd Aug 2017
Save content
Have you found this content useful? Use the button above to save it to your profile.

I was very disappointed to learn that Philip Hammond has now withdrawn the suggestion that Britain will become a tax haven after it leaves Europe.

Before even getting to the announcement, it is odd to note that in the last few weeks all of the major announcements emanating from government seem to have been delivered by Mr Hammond.

Somewhere along the way, I missed the politicking whereby someone who was Chancellor of the Exchequer appears to have moved next door and taken over from that woman who was aspiring to become the second Mrs Thatcher.

On the basis that Mrs Whatsername proved so unpopular in the General Election, on reflection perhaps this is a good strategy on the part of the Conservative Party.

In any event, whoever is running the country, it appears that Mr Hammond is the spokesperson and quite possibly guiding force behind or on the throne.

Many of you will remember the excitement in the accounting profession at the beginning of the year when he announced to a German newspaper that, if those nasty Europeans did not play ball, we would take our ball home and set up our own game i.e. Britain would become a tax haven.

Bearing in mind the concerns of many in the profession that we are likely to lose a vast amount of business as those in the financial sector and quite possibly many others drifted away from the UK into Europe, wrecking the economy as they do so, this was a real boost to the spirits.

Now, still reluctant to speak to the UK media, dear Philip H has told Le Monde that he was only joking back in January and we never planned to screw the nasty foreigners by undercutting them on the tax front.

The cynical are suggesting that the only reason for this volte face (well it is a French paper) was the electoral disaster that unexpectedly left him in office but means that his party is deeply divided and could no longer get parliamentary approval for such a plan.

These developments beg lots of questions. The first is when the pitched battle between Hammond, Boris Johnson, Michael Gove et al for the top job is going to take place. They are certainly working hard to set out their stalls without having remembered to knife the lady in the back first.

Secondly, with an announcement today of yet another bank relocating a significant proportion of its London operations to the European mainland, something will need to be done in the not too distant future to protect an economy that is already reeling from exchange-rate challenges.

Lastly, as matters develop towards March 2019 and beyond, I predict that unless there are major changes in policy, tax revenues going forwards will not pay for the state’s spending needs. Closer to home, tax profession is also bound to suffer as a direct consequence.

Exciting times lie ahead.

Replies (1)

Please login or register to join the discussion.

avatar
By Knight Rider
07th Aug 2017 12:12

It seems unfair to say Mrs May was unpopular after achieving 42.4% of the national vote.
As the post referendum boom continues with the stockmarket reaching record highs, unemployment at record lows and the economy mopping up Europe's unemployed inevitably some businesses will relocate.
Disentangling the UK from The EU web will create opportunities for the profession as new trading relationships emerge accross the rest of the world.

Thanks (0)