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Mayfair Loophole & Tax Avoidance‏ - reply to letters from constituents via 38 degrees

March 31, 2015 4:24 PM
By George Cunningham - reply to letters from constituent via 38 degrees in Reply to letters from constituents via 38 Degrees

Dear Constituent,

I am very pleased that 38 Degrees has brought this issue out into the open. I agree that the so-called Mayfair tax loophole - which is said to allow private equity executives to pay relatively low tax on the profits their investment funds make from buying and selling companies - is unfair and needs to be reviewed. As you are aware, this measure failed to be debated last week because of time limitations.

Liberal Democrats in Government have in general made a lot of progress in cracking down on tax avoidance and evasion with the aim of making the economy fairer for everyone. We have closed over 40 tax loopholes which previous Labour and Conservative Governments left wide open, allowing rich individuals and businesses to get away with paying small amounts of tax. We have also invested nearly £1 billion in HMRC so it could recruit specialist staff and expand its anti-tax dodging operations.

Thanks to the measures we've taken, HMRC will have secured £100 billion in additional tax revenue between 2010 and 2015. In the next Parliament, we want to raise a further £6 billion through our crackdown as we finish the task of balancing the country's books. Part of that will involve the creation of a new offence to punish firms that fail to act to prevent economic crime - a measure confirmed in the recent Budget. In last year's Autumn Statement, we stopped fund managers from avoiding income tax on their guaranteed management fees.

Liberal Democrats want to have a fundamental review of how tax is applied to the venture capital industry so we can root out bad practices while ensuring that we keep a successful private equity sector in the UK, which makes a large contribution to the economy.

It's worth remembering that under Labour, very wealthy hedge fund managers could get away with paying as little as 18% tax on their massive earnings while - at the same time - the people that cleaned their mansions and fast cars were taxed at 20%. We've put a stop to that by raising Capital Gains Tax by 10%. We have also - unlike previous Governments - made sure that rich people who buy private jets actually pay a fair share of tax on them.

Liberal Democrats have made cracking down on tax evasion a priority while in Government and we will not let up. Give us your vote and the clean-up will continue.

Best regards.

George Cunningham, Liberal Democrat

Prospective Parliamentary Candidate for North Thanet.

PS. Finally I would like to encourage you to look at my policy statements: http://eastkentcoastlibdems.org.uk/en/page/george-cunningham-for-thanet-north

and on my Facebook page by googling George-Cunningham-for-North-Thanet to get to know me better. As you are an activist in my constituency, I may also email you from time to time with my positions on issues and a possible invitation to meet me nearer election time. Once I email you, if you want to leave the list at any time, simply let me know to 'unsubscribe' you.