Members of the UK200Group of independent accountancy and lawyer firms have today commented on news that Germany wants wealthy householders to pay towards the costs of any future bail-outs for weaker members of the eurozone. The plans could see a new 'wealth tax' imposed on property and other assets. However, this could affect British citizens with holiday homes in places such as Spain, who could have new taxes imposed on their properties if, for example, Spain's government was forced to seek a bail-out. Germany argues that richer homeowners in other countries have so far avoided paying their fair share to rescue the euro.

David Whiscombe, tax director at UK200Group member firm Berg Kaprow Lewis

“Upsetting as it would be to UK residents with homes in Spain, there’s a compelling kind of logic. If you acquire real property in some overseas jurisdiction, there is surely an implicit agreement that you subject yourself to that country’s rules. After all, isn’t that exactly what the UK has just done in regard to the changes in the taxation of expensive dwellings in the UK?

“You can certainly argue about whether it’s right for Spain to confiscate a slice of people’s assets: but if you accept that it’s okay in principle, you can’t logically object to UK owners of Spanish property being required to share the pain. If the UK government did such a thing, can you imagine the uproar if property owned by non-residents were exempted?”

Jonathan Russell, partner, UK200Group member firm ReesRussell

“Cyprus was the first test in establishing the concept of taxes on the wealthy to bail out a country as a condition for external support. That this would then encourage the policy to extend to other euro area support packages was reasonably predictable. 

“However, there may be a bonus for the euro economy from the threat. At the moment, all euro economies need a boost and therefore the threat of taxing the wealthier individuals may stimulate them to spend and reduce their wealth to avoid or reduce such hits. This spending could in itself stimulate the economies so that the likelihood of a bailout package is reduced.”

Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members. Telephone 01252 401050, email admin@uk200group.co.uk or visit www.uk200group.co.uk 

 Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy firms and lawyer firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members.  Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

 

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