8 Apr 2015
UK elections: Miliband’s pledge bad for the Pound – Investec
FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, comments that Miliband’s pledge to abolish non-domicile rule on wealthy individuals would lead to more outflows and less buying inflows for sterling, a potentially bad combination for the GBP.
Key Quotes
“Back home the latest Sterling negative headlines were pasted across this morning's newspapers with the General Election under a month away. The reports state Mr Miliband pledged Labour would abolish the non-domicile rule which allows some wealthy individuals to limit the tax paid on earnings outside the UK. Mr Miliband will say the rule "makes Britain an offshore tax haven".”
“Abolishing the rule would certainly see Sterling outflows, as wealthy individuals move their finances abroad, and less Sterling buying from inflows of earnings repatriation. Less buying, more selling, a potentially bad combination for the Pound.”
Key Quotes
“Back home the latest Sterling negative headlines were pasted across this morning's newspapers with the General Election under a month away. The reports state Mr Miliband pledged Labour would abolish the non-domicile rule which allows some wealthy individuals to limit the tax paid on earnings outside the UK. Mr Miliband will say the rule "makes Britain an offshore tax haven".”
“Abolishing the rule would certainly see Sterling outflows, as wealthy individuals move their finances abroad, and less Sterling buying from inflows of earnings repatriation. Less buying, more selling, a potentially bad combination for the Pound.”