The regime allowed non-residents of the United Kingdom to pay tax only on income earned there, excluding income from abroad. Rishi Sunak's wife argued that Infosys did not pay tax on dividends with this exemption.
The British government announced on Wednesday that it is ending the country's non-resident non-resident regime, replacing security-related charges that allowed people without a permanent home to pay tax only on income earned in the UK. British Social Security and other taxes.
British Chancellor of the Exchequer Jeremy Hunt had scheduled a public presentation of the 2024 budget this Wednesday, with the Conservative Party under pressure from an economy riddled with difficulties and visible failures in many public services. Crucially, the non-resident citizen regime ended, a tax exemption that allowed workers without a permanent address in the country to pay tax only on British income, while the rest were exempt.
Wife of current Prime Minister Rishi Sunak, her father, billionaire N.R. Narayana Murthy also invoked the same law to justify non-taxation of dividends received from Infosys, an Indian technology giant.
It's one of Labour's key demands, with the Conservatives losing ground in recent weeks and expected to lose government in this year's election.
However, the changes did not stop there. Jeremy Hunt announced that he would keep two cents in Britain's social security system, the same amount of cuts already enacted in November. So the ratio 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 British property increases to £5,000. A tax on tobacco vaporizers and related products has been introduced, but a tax increase on alcoholic beverages scheduled for August has been postponed until February next year.
The London government has also revised its growth forecasts upwards, now to 0.8% this year and 1.9% next year, up 0.5 percentage points from forecasts launched in the autumn.
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