Ferrari cuts number of cars it sends to UK after tax changes

"Benedetto Vigna, the chief executive of the carmaker, said that Ferrari had seen a stabilisation in sales after the decision to reduce the number of vehicles it allocated to the UK. Some people are getting out of that country for tax reasons, he told the Financial Times, adding that taxes were not the only reason for the fall in residual values. There are many different factors. Maybe when you sell to the UK, that car cannot be sold somewhere else [because of its right-hand wheel]."

"In April the government abolished favourable tax treatment for non-domiciled residents UK residents who declared that their long-term home was overseas to avoid paying UK taxes on global income and assets and raised other duties on the wealthy. The chancellor, Rachel Reeves, told the Guardian earlier this week that talk of an exodus of wealthy residents was just scaremongering. This is a brilliant country and people want to live here, she said. And I think, when people scaremonger again this year, we should take some of that with a pinch of salt."

"Reeves, who has said that the wealthy will be one of the targets for higher taxes in next month's budget, has previously ruled out imposing a wealth tax but campaigners for changes to the system have highlighted other options. These include raising the rate of capital gains tax, levying national insurance on rental income and on partners in law firms and consultancies, and creating higher council tax bands."

Ferrari began limiting the number of cars exported to the UK about six months ago to halt declines in residual values caused by shrinking demand. CEO Benedetto Vigna said sales stabilised after the reduction in allocations and noted some wealthy buyers were leaving the country for tax reasons, while other factors such as right-hand-drive resale limitations also affected values. In April the government abolished favourable tax treatment for non-domiciled residents and increased duties on high earners. The chancellor dismissed claims of a wealthy exodus. Campaigners have proposed measures targeting the wealthy, including higher capital gains tax, national insurance on rental income and partners, and new council tax bands.

Read at www.theguardian.com