Why should this be shocking?

The party’s deputy chairman shocked colleagues when he revealed that he had not paid tax on his overseas fortune since becoming a member of the House of Lords a decade ago.

Nobody pays tax on their fortune because we do not have wealth taxation in this country, we have income taxation.

Further, we have income taxation on income that you actually take. Say you own a company which then owns other companies (not unusual for a rich man really). That master company gets income from those more junior companies. Through dividends, interest of capital gains.

As long as you don\’t take that money out of the master company no personal taxation is due*.

Are we really to assume that all of the journalists following this don\’t understand these simple points?

* It\’s a little more complicated than that yes, but not that much.

8 thoughts on “Strange”

  1. “Are we really to assume that all of the journalists following this don’t understand these simple points?”

    Since almost everything that I read in newspapers concerning subjects that I actually know about appears to be wrong, the answer would almost certainly be “Yes”.

  2. Brian, follower of Deornoth

    Partly what Pogo and Kay Tie said. Their abysmal ignorance is compounded by a desire to cause embarrassment to the Tory Party.

  3. He’s built a massive fortune out of his corporate interests in Belize.

    Yet Ritchie, who loves his ‘right time, right amount, right place’ gubbins, believes that we should tax that Belizean wealth here. As, indeed, do the muppets in the national press.

    In any case, don’t we want the Belizeans, all in the main poorer than us, to keep tax revenues that are rightfully theirs?

  4. Embarrassment to the Tories is just a bonus*, no, the real gig here is Envy Politics and Class War.

    Pre-requisite for both being ignorance.

    * taxed at 50% and capped?

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