Jeremy Hunt has pledged to pay a higher amount of capital gains tax on his properties as a voluntary measure, in order to avoid receiving any benefits from a tax reduction he implemented.
The chancellor declined to reveal the number of homes he possessed, but asserted that he would incur a greater tax percentage on any earnings from selling his real estate.
On Wednesday night’s Peston programme on ITV, Hunt was asked about the number of houses he owns. He responded by calling them “personal questions.”
During the budget announcement on Wednesday, Hunt took a dig at Labour’s vice chairman, Angela Rayner, who has been under scrutiny for selling her previous council house. “I noticed the Labour party’s vice chairman showing keen interest, considering her numerous residences,” he remarked.
Hunt reduced the capital gains tax rate for higher-income individuals, from 28% to 24%, on the profits made from selling their second homes.
When asked if he would personally gain from this, Hunt informed Peston that he will not benefit from the change in CGT. He explained that he has consciously made the decision not to benefit from a direct decision such as this and will therefore pay taxes at the original rate for his properties.
He stated his intention to pay a 28% capital gains tax voluntarily in the event of selling one of his properties.
When asked why he did not disclose the number of houses he owns despite making a joke about the sale of Angela Rayner’s home in Parliament, Hunt responded by saying, “I was playfully teasing Angela Rayner. We always make our declarations.”
Per the government’s record of interests, Hunt and his spouse possess Mare Pond Properties Limited, a company that holds properties. His legislative interests include seven apartments located in Southampton.
The chancellor has declared ownership of a 50% stake in a vacation home in Italy and a 50% share in an office building in London. According to his filings, a portion of the profits from his “residential investment property” are donated to charity.
In 2018, as the health secretary, Hunt had to say sorry for being late in informing Companies House and parliamentary authorities about his involvement with the Mare Pond Properties company.
Hunt and his family are believed to reside in three different houses in the United Kingdom. They are permitted to use the official residence of the Chancellor at 11 Downing Street.
As reported by the Evening Standard, Hunt possesses a townhouse worth 1.7 million pounds in Pimlico, located near Westminster. This property was purchased in 2010. His personal webpage states that he splits his time between London and his home in Hambledon, a village located in Surrey.
Hunt’s seven flats in Southampton are part of a luxury waterside development called Ocean Village. The value of his property is not known, but according to Rightmove, individual flats in the development sold last year for an average of £225,7111.
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Several individuals who own second homes expressed frustration with the budget as Hunt eliminated tax advantages for furnished vacation rentals, including those found on Airbnb. He stated that this decision was made in order to increase the availability of properties for long-term rental by local residents in popular tourist destinations like Cornwall and central London.
During his budget speech on Wednesday, Hunt expressed worry that the current tax system is causing a discrepancy, resulting in a limited number of properties for local residents to rent for an extended period of time. In order to improve the tax system for the benefit of local communities, he announced plans to get rid of the furnished holiday lettings regime.
The article states that the prime minister abstained from participating in discussions regarding the elimination of non-domicile tax status in order to prevent any potential conflicts of interest.
Akshata Murty, the wife of Rishi Sunak, holds shares in Infosys, the Indian IT firm established by her father. As a non-domestic resident in the UK, she is exempt from paying UK taxes on her foreign earnings.
Following the revelation of her non-domiciled tax status during Sunak’s time as chancellor, Murty announced her decision to voluntarily pay UK taxes on her income from anywhere in the world.
Source: theguardian.com
