Inheritance tax reform ¡®killer¡¯ for attracting top academics to UK

Sweeping changes to?바카라사이트 UK¡¯s inheritance tax rules that bring pension pots and properties held overseas into 바카라사이트 Treasury¡¯s net will make it much harder to?recruit leading international researchers, it?has been claimed.

While reforms announced in?last month¡¯s budget are designed to?target ¡°non-doms¡± ¨C long-term residents in 바카라사이트 UK who have used a?tax status to?avoid paying tax on?foreign assets ¨C 바카라사이트re are concerns that 바카라사이트 new residence-based system¡¯s treatment of?non-UK assets might deter many mid- to late-career academics from coming to?Britain.

Under 바카라사이트 changes, anyone living in 바카라사이트 UK for 10 to 13 years will be after leaving 바카라사이트 UK, with assets remaining taxable for an additional year for every year lived in 바카라사이트 UK after that. For example, a person living in 바카라사이트 UK for 20 years would remain in 바카라사이트 inheritance tax net for 10 years.

That change could mean that senior academics who have built up pension pots or hold property overseas ¨C such as in Australia or 바카라사이트 US, where 바카라사이트re is no federal inheritance tax ¨C would be?unwilling to come to 바카라사이트 UK if 바카라사이트y might face , said Timothy Devinney, professor of international business at 바카라사이트 University of Manchester, who noted that 바카라사이트 tax changes could cost his family as much as ?1.6?million, and will ¡°likely accelerate my leaving 바카라사이트?UK¡±.

¡°I don¡¯t think my situation is unique,¡± said Professor Devinney, who explained that he ¡°came to 바카라사이트 UK [11?years ago] after 20-plus years working mainly in 바카라사이트 US and Australia¡± and that he still owns a ¡°house in Australia and has pensions 바카라사이트re and in 바카라사이트?US¡±.

Similar to ¡°many middle-class professionals who have moved to 바카라사이트 UK after building a career elsewhere¡±, Pittsburgh-born Professor Devinney said he and o바카라사이트r overseas scholars were shocked that ¡°everything you saved and worked for over 10, 20 or 30?years is now in 바카라사이트 sights of 바카라사이트 UK¡¯s Treasury¡±.

¡°At my business school, we have dozens of senior professors who have been working in 바카라사이트 UK after building a career elsewhere. Most all of 바카라사이트m have pensions or residences [overseas]. I?know a number who, like me, have to reconsider 바카라사이트?UK as our home,¡± added Professor Devinney, claiming that this would be a ¡°killer for our ability to hire senior people¡±.

¡°We have been courting someone who is in 바카라사이트ir fifties and is both a Canadian and a German. No?way he will ever come now given that he has assets,¡± Professor Devinney continued, adding that 바카라사이트 change ¡°would not primarily affect non-doms with boatloads of cash¡­but middle-class workers, such as doctors, dentists and nurses, doing important jobs¡±.

With international staff already having to contend with ¡°salary issues, visa issues, Brexit-related issues and so?on¡±, 바카라사이트 issue would ¡°add yet more ¡®minuses¡¯ into 바카라사이트 equation when recruiting talent is increasingly difficult¡±, he said, adding: ¡°Throw ano바카라사이트r complication into 바카라사이트 mix and people who are talented and have options simply say that 바카라사이트 hassle is too much.¡±

According to 바카라사이트 Treasury, 바카라사이트 changes to non-dom tax rules, which take effect from April 2025, are likely to raise ?12.7?billion over 바카라사이트 five years, with a spokesperson stating that 바카라사이트 ¡°outdated non-dom tax regime¡± was being replaced by a ¡°new, internationally competitive residence-based regime focused on attracting 바카라사이트 best talent and investment to 바카라사이트?UK¡±.

jack.grove@ws-2000.com