Mary Monfries, PwC head of tax services for entrepreneurs, private companies and private clients, says it’s a welcome move. “As far as ensuring the fiscal competitiveness of the UK is concerned, something which is critical to maintaining and growing the international investor and customer base for UK business, the long-lobbied-for commitment to bring in an exemption for foreign dividends is good to see.”
However, the measure has been teamed with a new, higher 45 per cent tax rate for income above £150,000; the 0.5 per cent increase in National Insurance Contributions for employers and employees; and the withdrawal of personal allowances from higher earners.
Entrepreneur Tony Hayday believes the net result will be “an awful lot of anger”. He says: “We’re going back to the old ‘tax the rich’ days but at some stage we are all going to feel the pain of this crisis and it’s going to undermine all the work that’s been done to attract people and businesses into London. I personally think it’s madness but where else is the money to stimulate the economy going to come from?”
Hayday is the CEO of The Software Bureau. He set up direct mail production business DPS Direct Mail in 1992 and sold it for £8million in 2005.