Correct. For the very rich, mobile people paying tax is optional. This is why most rich pop stars have 3 homes in 3 different countries. So they can spend up to 3 months in the UK and up to 6 months in each of their other homes. That way they are not domicile in any country and pay no tax. Rich business owners can do the same or go to Jersey or the IOM and pay 20%.
Tax like all expenses in life is a competitive market, which is why many freelance computer programmers and graphic artists moved to Holland when the IR35 regulations were brought in by G. McRuin as the tax rates are better.
Ukraine has a much lower taxes than the UK with the self employed being able to register as Private Entrepreneurs and operate under a simplified tax system. They can turnover about £24k a year and pay a fixed amount of tax of £270. Any turnover above £24k is taxed at 17%. Now this is very attractive for somebody like me or anybody else in the IP market as our material costs are negligible. Savings interest and dividends are taxed at 5%. Outside of town property tax is zero if your house and outbuilding are less that 250sqm. Petrol is about £4 a gallon and LPG 50p/l. Domestic electricity and gas about a third of UK prices, with very small standing charges. VAT is 20%, but is being reduced to 17% by 2015.
The country is very different to the UK, so it is going to be interesting to see how I get on. There is a UK ex-pat community out there, which I intend to tap into.
Author
Topic: Tax and the wealthy. (Read 1292 times)