Steve Baty’s Post

I saw this comment online, on an article about introducing more taxes: Why should Jack be punished for living a little whilst he is young? Jill saving up just drives inequality, saving instead of spending is the core driver of inequality in New Zealand. Everyone should be encouraged to spend everything as soon as they earn it as this will drive GDP growth and lower inequality. There will always be foreign capital available for capital intensive projects that become necessary or the government could take over all capital intensive operations such as starting businesses (further reducing inequality)! This mindset is naïve and selfish. It’s unfair to expect those who work hard, save, and invest to subsidise those who choose to "live a little" and spend everything. Wealth comes from sacrifice and discipline—if you don’t save, you can’t invest, and without investing, you’ll never escape the cycle of needing to work forever. Relying on foreign capital or the government for big projects only deepens dependency. The real driver of inequality is not saving—it’s the lack of financial responsibility. https://lnkd.in/g_csxHXb

I’ve been diving into the stats on the AusIndustry website and noticed some interesting trends. Over the past decade, Australia’s Refundable R&D Tax Incentive has seen a significant increase, nearly doubling in value. This growth highlights the rising awareness and utilisation of the program among businesses. Before 2021, the yearly refundable R&DTI hovered just over $2 billion. Post-COVID, we’re now seeing R&D tax returns climb steadily toward the $4 billion mark. It’s a clear sign that more companies are leveraging this incentive to fuel their innovation efforts and build stronger businesses. On the other hand, the non-refundable R&DTI has remained relatively flat over the same period. In fact, it’s declined slightly—from $810M in 2014 to around $510M since 2020. These stats paint an intriguing picture of how Australian businesses are engaging with the R&D Tax Incentive, and they raise questions about what’s driving these shifts. What are your thoughts on these trends? #ausindustry #RDTI #statistics

Tax avoidance by the superrich is a form of systemic violence perpetrated by billionaires upon the poor. It's another good reason why we need a total system change, a paradigm shift in the way society is structured. Failing to rein in the superrich also undermines the rule of law - because why should someone be punished for shoplifting when their children are hungry, while the emissions of the megayachts of the superrich are causing droughts, floods and famines... ...yet none of them end up in court for their ecocidal lifestyles? The rule of law stands between us and anarchy - yet it cannot survive when it is so clearly weighted towards the wealthy and privileged. It will break under these intolerable strains unless radically reformed in ordinary people's favour. "Whether through silting their money away in tax havens, or exploiting loopholes and using creative accounting, the world’s billionaires these days pay a far smaller proportion of their income to fund public goods than the rest of us. (...) At a time when governments around the world are struggling with high levels of debt, and facing dramatic challenges such as dealing with the consequences of the climate emergency, this crazy, upside down state of affairs should be seen as intolerable. Such glaring inequity undermines the bonds of reciprocity and trust that sustain healthy societies." #superrich #ruleoflaw #billionaires #taxavoidance #systemicviolence #inequality #wealthtax #eattherich #trust #ethics #paradigmshift

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SEIS/EIS: A Strategic Solution for the Rise in Capital Gains Tax The UK’s recent Autumn Budget brought significant changes, including an increase in Capital Gains Tax (CGT) rates. For investors, this creates challenges—but also opportunities. The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are now more relevant than ever, offering a powerful way to navigate the changing tax environment. SEIS and EIS are government initiatives designed to encourage investment in high-growth startups and SMEs. These schemes provide generous tax reliefs, reducing financial risk while supporting innovation and economic recovery. Why SEIS and EIS Matter Now 1️⃣ CGT Deferral & Exemption Defer CGT on other asset gains with EIS. Completely exempt EIS gains after three years. SEIS offers an upfront 50% CGT exemption on reinvested gains. 2️⃣ Income Tax Relief Claim up to 50% of SEIS investments or 30% of EIS investments against your income tax liability. 3️⃣ Loss Relief Offset losses from underperforming investments against other income or gains, minimizing risk. 4️⃣ Inheritance Tax Relief 100% relief on SEIS/EIS investments after holding for two years—ideal for estate planning. Why Act Now? - Higher CGT rates amplify the value of these schemes. - Gain access to high-growth companies typically unavailable through traditional investments. - Support SMEs, driving innovation, job creation, and economic recovery. The UK government has extended SEIS/EIS benefits until 2035, making this the perfect time to align your investments with these schemes. By leveraging SEIS and EIS, investors can secure immediate tax relief, long-term growth, and a vital role in fostering the UK’s entrepreneurial ecosystem. 💡 Whether you’re an experienced investor or exploring new opportunities, SEIS and EIS offer a clear path to reducing tax liabilities while contributing to the future of UK business. #TaxPlanning #Investing #SEIS #EIS #CapitalGainsTax #UKBudget #SMEs #Innovation

in the latest blog post by my colleague Damian Cooper at Acuvest Ltd, we examine the important role that tax plays in investments in Ireland today. https://lnkd.in/gekkydCw

Meet Frank. In Australia there’s a quirk in the tax system that can make you serious money when you invest. This opportunity comes from the fact that when you invest with shares, you receive part of the company’s profits paid out as ‘dividends’. In Australia, because tax has already been paid on these company profits, you receive a tax credit that directly offsets the tax you pay on your income. These tax credits are called ‘franking credits’, which you get paid when you receive ‘franked dividends’. The result - you keep more of your investment (and employment) income and have more money you can save and invest to get ahead faster. You effectively fast track your wealth building. If you’re just getting started investing the numbers may start small, but will end up being huge as your investment income builds. For example, if your goal is to build an investment income of $95k, if you do this with shares that DONT pay franked dividends you’d need around $1.96 million in investments. But if you have shares that all pay dividends with these franking tax credits, you’d only need around $1.38 million to receive THE SAME after tax income. That’s $580k LESS in investments to get the SAME after tax income, and shows the power of using the rules to your advantage. The best part - you don’t need to actually do anything other than invest into the right companies. If you want to leverage these tax credits as part of your investing strategy, it’s important you get your investments structured right from the start - it can be tricky to restructure things AFTER you’ve built up your investments. Invest smarter 🤓💰🚀

Some thoughts on the speculation regarding the removal of Business Property Relief from AIM shares. There is a real danger that some of the speculation becomes self-fulfilling to flows and valuations given that nothing from a single government minister, or government document has suggested the removal of this tax relief. The speculation is a function of reports from the IFS, Tax Policy Associates & Resolution Foundation suggesting additional IHT tax revenue can be sourced in this way. This is not to say that a new government won’t be looking at this policy area - given the unwise tax lock it has imposed from its own manifesto, and current spending demands - but some of the commentary presents the issue like it is a done deal. The health of the AIM market as a venue for raising UK public equity is not just a function of the tax advantages, but also the adviser community presenting AIM as a stable and attractive platform. I do have significant concerns that the broad economic impact of BPR removal would be negative, even should the first order change be scored by the OBR as additional Exchequer revenue. Stepping back I happen to think that BPR on AIM shares is not a particularly sensible tax relief and should be sunset in time, however without countervailing reforms to the flows environment (Mansion House compact, pensions reform, ISA reform) to bring the UK in line with its international peers the relief is an important incentive to a competitive cost of UK public equity and, by extension, the government’s growth mission. Better for the Chancellor to unveil some of these reforms at the 14 November Mansion House speech, commence a procyclical rebound in UK flows, then consider the future for BPR.

In private equity, "carry" or carried interest is a central component of compensation for fund managers. It’s a share of the profits that general partners (GPs) receive after limited partners (LPs) have been paid back their capital and an agreed-upon rate of return. While carried interest has proven to be a highly lucrative form of compensation, the tax treatment of carry has long been a subject of scrutiny, debate, and potential reform in the UK and other major jurisdictions. With the UK government’s proposed tax reforms on carried interest, the implications for private equity firms, fund managers, and investors are substantial. The changes aim to address tax fairness but could also impact the structure, incentives, and financial returns within the private equity industry. In the latest blog from Laurence Simons, Associate Director, Kathleen Harris explores the current tax treatment of carried interest in the UK, the implications of the proposed tax reforms, and how these changes could affect private equity professionals and the industry at large. You can read the full blog here: https://lnkd.in/egkC5qW7 #PrivateEquity #CarriedInterest #Tax #TaxReforms #LaurenceSimons #EnrichingCareers

🍀 Did you know that in Ireland, certain capital gains are exempt from tax? 📈💰 Whether you're investing in stocks, selling property, or realizing gains from other assets, understanding the tax implications is crucial. Fortunately, Ireland offers exemptions on certain capital gains, providing a welcomed boost to your financial portfolio. Here's what you need to know: 👉 If you're selling your primary residence, you may be eligible for relief from capital gains tax. This relief can significantly reduce or eliminate the tax on any gains made from the sale. 👉 Investing in qualifying start-up companies can yield tax benefits, including exemptions from CGT on any gains realized from the disposal of the shares. 👉Transfers of assets between spouses and civil partners are exempted from Capital Gains Tax. 👉 Transfers of assets between spouses and civil partners who are separated are exempted from Capital Gains Tax if they are made under a Separation Agreement or a court order. 👉 The transfer of a site from parent to child is exempted if it is to build the child's principal private residence. The land must be less than one acre and have a value of €500,000 or less. 👉 There is no Capital Gains Tax on assets that are passed on after the demise of someone. Remember, while these exemptions can be advantageous, it's essential to seek professional advice to ensure you meet all requirements and optimize your tax strategy. By taking advantage of these exemptions, you can maximize your investment returns and secure your financial future. 🚀💼 #taxtipsforentrepreneurs #CapitalGainsTax #IrelandTax #FinancialFreedom #InvestingWisdom 🇮🇪💼