The system allowed citizens who did not have permanent residence in the United Kingdom to pay taxes in the country only on income generated there, excluding income from abroad. Rishi Sunak's wife justified not paying taxes on Infosys' profits with this exemption.
The British government on Wednesday announced the end of the country's unusual residency regime, a method that allowed people without a permanent home to pay tax only on income generated in the UK, as well as changing fees associated with security. British social security system and other taxes.
British Finance Minister Jeremy Hunt had set the date for announcing the general plan for the 2024 budget on Wednesday, in light of pressure from the Conservative Party due to an economy full of difficulties and clear failures in many public services. The most notable event is the end of the non-habitual resident regime, a tax exemption that allowed workers without a permanent address in the country to pay tax on British income only, with the rest exempt.
The wife of current Prime Minister Rishi Sunak cited this same legislation to justify not paying taxes on dividends received from Indian technology giant Infosys, which was founded by her father, billionaire Narayana Murthy.
This was one of the main demands of Labour, whose Conservatives have lost popularity in recent weeks and are expected to lose the government in this year's election.
However, the changes do not stop there. Jeremy Hunt also announced a two-year cut in retention rates in Britain's social security system, after a cut of the same size had already been approved in November. So the rate will be 8%.
On the wealth tax side, the top tax rate associated with property gains falls from 28% to 24%, while the exemption for investments in UK assets increases by £5,000. There is also a tax on tobacco vaporizers and related products, but a rise in the alcohol-related tax due for August has been postponed until February next year.
The London government also updated its growth forecast upwards, now indicating 0.8% this year and 1.9% next year, an increase of 0.5 percentage points compared to the forecast it released in the fall.
