Every trick 100% legal. Every trick costs the public billions. Every trick has a fix Parliament chose not to implement. 😂
TRICK 1 · THE BIG ONE
Non-Dom Status (reformed 2025 but still leaking)
Non-UK domiciled individuals could avoid tax on foreign income for 15+ years. "Reformed" in April 2025 — replaced with 4-year residence regime.
點玩
Foreign income only taxed when remitted to UK. Live in London, earn dividends in Monaco, leave the money in Monaco — zero UK tax. Reform 2025: 4-year window still lets wealthy foreigners bring money tax-free for 4 years. The "reform" was watered down after lobbying by the City.
邊個用
Hedge fund managers, oligarchs, Middle Eastern royalty, international finance executives living in Knightsbridge
公眾損失
~£3.8B/year historically. Now ~£1.2B/year under the new regime (still leaking)
合法嗎
100% legal. Was legal for 200+ years. Reform was lobbied down by the City of London.
點改
Full residence-based taxation from day 1. No windows. No exceptions. Tax all worldwide income if you live in the UK.
TRICK 2 · THE STRUCTURE
Family Investment Company (FIC)
Wealthy families set up FICs: parents hold growth shares, children hold dividend shares. Investment growth accrues to parents who control but don't "own" the value. Dividends flow to children at lower tax rates.
點玩
Set up a limited company. Issue different share classes: growth shares to parents, dividend shares to adult children. Investments grow inside the company. When dividends are paid, they go to children who may be basic-rate taxpayers or non-taxpayers. On death: FIC shares pass via IHT with business property relief. Avoids higher income tax (45%→up to 8.75% for children), manages IHT.
邊個用
Families with £1M+ in investments. Exploding in popularity since 2020. HMRC investigating some but structures remain valid.
公眾損失
~£300M/year and growing RAPIDLY as more wealth advisors discover the structure
合法嗎
Legal. HMRC has challenged some FICs under the "settlement legislation" but most survive.
點改
Tax FICs as transparent for income tax purposes. Apply IHT directly to underlying asset value, not the shares.
TRICK 3 · THE CLASSIC
Buy, Borrow, Die — UK edition
Same as the US version but with UK-specific twists. Never sell appreciated assets. Borrow against them (loans are not income). At death, IHT exemptions and trust structures minimize tax.
點玩
Own £50M in shares/property. Need cash? Don't sell (that triggers CGT). Borrow against the assets (loan = not income = no tax). Live off the loan. At death: £1M IHT-free for married couples + trust structures + 7-year gift rule = most of the estate passes tax-free. Only 4% of UK estates pay ANY IHT.
邊個用
Every wealthy family in the UK. The Duke of Westminster's estate paid near-zero IHT through trust structures established generations ago.
公眾損失
~£15-20B/year in foregone IHT and CGT on unrealized gains
合法嗎
100% legal. The Duke of Westminster famously said: "It would be a tragedy if the Grosvenor Estate had to be sold to pay death duties."
點改
Tax unrealized gains at death. End the 7-year gift rule. Cap IHT reliefs. Tax trusts as transparent.
TRICK 4 · THE FAVOURITE
Business Property Relief (BPR) — 100% tax-free transfer
Business assets (shares in unlisted trading companies, business property) get 50-100% IHT relief. Pass a £100M business to your children — pay zero IHT.
點玩
Own shares in a trading company (even a family investment company structured as "trading"). Hold for 2+ years. 100% BPR = 100% IHT relief. Pass £100M to children tax-free. The key: structure your investments to qualify as "trading" rather than "investment."
邊個用
Business owners, family trading companies, agricultural property owners (APR), newspaper proprietors
公眾損失
~£7B/year in foregone IHT. Growing as more families use trading structures.
合法嗎
Legal. IHTA Section 104-113. Labour has proposed capping BPR at £1M but not implemented.
點改
Cap BPR at £1M. Require genuine trading activity (not investment vehicles structured as trading). 10-year minimum holding.
TRICK 5 · THE HIDDEN ONE
Agricultural Property Relief (APR) — the farmland dodge
Agricultural land and buildings get up to 100% IHT relief after 2 years of ownership. Wealthy individuals buy farmland specifically to avoid IHT.
點玩
Buy £50M of farmland. Hold for 2 years. 100% APR = zero IHT on £50M. James Dyson owns ~36,000 acres of farmland in the UK. Does he farm? Not really — but the land qualifies. You can even lease it to a tenant farmer and still get the relief. Some landowners don't even walk on their own "farms."
邊個用
James Dyson (36,000 acres), wealthy families buying farmland purely for IHT planning, aristocratic estates
公眾損失
~£2.5B/year in foregone IHT. Also distorts land prices — farmland is 8-10x more expensive than it should be.
合法嗎
Legal. IHTA Section 115-123. Labour has proposed capping APR at £1M but facing massive pushback from landowners.
點改
Cap APR at £1M. Require active farming (owner must be the farmer, not just the landlord). 10-year minimum holding.
TRICK 6 · THE RATE GAME
CGT Rate Differential — wealth taxed at half the rate of work
Income tax: 20%/40%/45%. CGT: 10%/20% (non-property), 18%/24% (property). Wealth gains are taxed at roughly HALF the rate of work income.
點玩
Earn £200K salary: pay 45% (additional rate) = £90K tax. Sell £200K of shares: pay 20% = £40K tax. Same £200K. Half the tax. Just for being wealth instead of work. The lower rate is justified as "rewarding investment and risk-taking" — but the wealthy don't take more risk than workers. They take less.
邊個用
Every wealthy person with investments. The entire British upper class.
公眾損失
~£15B/year from the rate differential alone
合法嗎
Legal. Policy design. The "rewarding investment" narrative is the cover story.
點改
Align CGT rates with income tax rates. £200K of gain = £200K of salary = same tax. Wealth = work.
TRICK 7 · THE STARTUP GIFT
Business Asset Disposal Relief (BADR) — 10% CGT on £1M
Formerly Entrepreneurs' Relief. Pay only 10% CGT (instead of 20%) on up to £1M of qualifying business sale gains. Lifetime limit.
點玩
Build a business, sell it for £5M with £3M gain. Normal CGT: 20% × £3M = £600K. With BADR: 10% × £1M = £100K (rest at 20%). Save £400K on one transaction. Was £10M lifetime limit until 2020 — now £1M (still massive).
邊個用
Business owners selling companies. Tech founders exiting.
公眾損失
~£2.5B/year in foregone revenue
合法嗎
Legal. TCGA Section 169N. Reduced from £10M to £1M by Sunak in 2020.
點改
Remove the preferential rate entirely. A business sale gain IS a gain. Or cap at £250K lifetime.
TRICK 8 · THE TAX-FREE SHELTER
ISAs — £20K/year tax-free forever
Individual Savings Accounts: £20,000/year invested, all growth and income tax-free forever. No CGT, no income tax on dividends.
點玩
Max out ISA every year: £20K at 7% growth for 30 years = ~£1.8M tax-free. Married couple: £3.6M. Every penny of growth, every dividend — zero tax forever. Designed to encourage saving, but the max benefit goes to those who can afford to save £20K/year (£40K for couples). The working class can't fill it.
邊個用
Middle class and above who can afford £20K/year in savings
公眾損失
~£4B/year in foregone revenue (and growing as ISA pots mature)
合法嗎
Legal. Designed to encourage saving. But the design favors the wealthy.
點改
Reduce to £10K/year. Tax gains above £500K lifetime ISA value. Or: lifetime cap of £1M tax-free per person.
TRICK 9 · THE PENSION LOOPHOLE
Pension Tax Relief + Tax-Free Lump Sum
Pension contributions get tax relief at your marginal rate (45% for additional rate payers). At 55+, 25% of the pot can be taken as a tax-free lump sum (up to £268,275 lifetime limit — was £1.073M before 2024).
點玩
Additional rate payer (45%): put £60K/year into pension. Get £27K tax relief. The money grows tax-free inside the pension. At 55+: take 25% out completely tax-free. The government pays you to save for retirement — but at 45% relief, it's primarily benefiting high earners. A basic-rate (20%) payer gets £12K relief on the same £60K. The wealthy get 2.25x more government help per pound saved.
邊個用
High earners (£150K+), business owners paying themselves via pension, doctors/dentists
公眾損失
~£20B/year in pension tax relief. ~60% goes to the top 20% of earners.
合法嗎
Legal. But the relief distribution is deeply regressive.
點改
Flat rate relief (30% for everyone). Or: cap lifetime pension pot at £1M (was the case until 2024 when it was abolished). Reduce tax-free lump sum to 20%.
TRICK 10 · THE INHERITANCE DODGE
7-Year Gift Rule + Trust Structures
Gifts made more than 7 years before death are completely exempt from IHT. Trusts can hold assets outside the estate. Only 4% of estates pay any IHT.
點玩
Transfer assets to children 7+ years before you expect to die. Zero IHT. Or: put assets in a discretionary trust — they're outside your estate immediately. Children benefit via trust distributions. The Duke of Westminster's estate paid near-zero IHT because the Grosvenor Estate has been in trust structures since the 1800s. The 7-year rule was designed to "catch" people — but with planning, it's a sieve.
邊個用
Every wealthy family with estate planning. The aristocracy. The Duke of Westminster (£10B estate, ~zero IHT paid).
公眾損失
~£2B/year in foregone IHT. Only 4% of estates pay ANY IHT. The system is designed to be avoided.
合法嗎
100% legal. IHTA Section 3A (7-year rule). Trust structures fully legal.
點改
Extend gift rule to 14 years. Cap trust reliefs. Or: abolish IHT entirely and replace with a wealth tax on assets >£2M.
TRICK 11 · THE DIVIDEND DANCE
Salary + Dividend Splitting
Company owner-operators pay themselves a low salary (below NI threshold) and take the rest as dividends. Dividends have lower tax rates and no National Insurance (8% NI that employees pay).
點玩
Own a Ltd company. Pay yourself £12,570 salary (personal allowance — zero income tax, zero NI). Take £100K as dividends. Dividend rates: 8.75% (basic), 33.75% (higher), 39.35% (additional). Compare: employment at £112K = 40% + 2% NI = 42%. Save ~£5-10K/year vs being an employee at the same income. Plus: corporation tax (19-25%) on profits before dividend — but with expenses, profits can be managed down.
邊個用
Every contractor, consultant, freelancer, and small business owner earning £50K-£300K. "Inside IR35" reforms have limited this but many still use it.
公眾損失
~£3B/year in foregone NI and income tax. IR35 reforms have reduced this but not eliminated it.
合法嗎
Legal outside IR35. Inside IR35: must pay as employee. But many structures remain outside.
點改
Align dividend rates with income tax rates. Apply NI to dividends. Or: merge income tax and dividend tax into one system.
TRICK 12 · THE PROPERTY SHELL
Company Ownership of Property — SDLT + CGT + IHT avoidance
High-value properties held through offshore companies can avoid SDLT, CGT, and IHT in one structure. Property is owned by the company, you own the shares.
點玩
Buy £20M London mansion through a BVI company. You own the company shares, not the property. Benefits: 1) No SDLT on transfer (you sell the company, not the property). 2) No CGT on the property (company owns it, you sell shares — but if company is offshore, no UK CGT on share sale). 3) No IHT (shares in offshore company — can be structured to fall outside UK IHT). One structure, three taxes avoided.
邊個用
Oligarchs, Middle Eastern buyers, international investors buying prime London property. Many properties in Kensington, Belgravia, Mayfair are owned by offshore companies.
公眾損失
~£1.5B/year in avoided SDLT, CGT, and IHT. Plus: empty investment properties distort the London housing market.
合法嗎
Legal. ATED (Annual Tax on Enveloped Dwellings) was introduced to catch this — but ATED rates are low (£4,200-£287,500/year) compared to the taxes avoided.
點改
Abolish corporate ownership of residential property. Or: increase ATED to match the avoided tax. Public beneficial ownership registry for all property.
TRICK 13 · THE LOSS HARVEST
CGT Loss Harvesting — crystallize losses, defer gains
Sell losing investments to crystallize capital losses. Use these losses to offset capital gains in the same tax year. Carry forward unused losses indefinitely.
點玩
Made £200K gain on share A and £150K loss on share B. If you sell both: net gain = £50K. Tax on £50K only, not £200K. Or: sell the loser this year, bank the loss, sell the winner next year when your income is lower. Timing is the weapon. Losses can be carried forward forever — creating a permanent shield against future gains.
邊個用
Every active investor with a portfolio. Wealthy families with multi-asset strategies.
公眾損失
~£1B/year in reduced CGT collections through timing strategies
合法嗎
100% legal. TCGA Section 16-18. Designed to allow genuine loss relief but used for systematic gain deferral.
點改
Limit loss carry-forward to 5 years. Or: allow losses only against gains on the same asset class. Or: annual mark-to-market CGT (tax gains/losses every year regardless of sale).
TRICK 14 · THE REBATE RACKET
R&D Tax Credits — the systematic over-claim
SME R&D tax credits give up to 33.35% back on qualifying R&D spending. Large companies get a 20% credit. But the definition of "R&D" is so loose that routine software development, cosmetic changes, and minor optimizations have been claimed.
點玩
Run a small company that does anything technical. Claim your developers' salaries as "R&D." HMRC estimates 30-50% of SME R&D claims are "incorrect" — but processing them takes years and enforcement is weak. Some companies claim back more than they actually spend on genuine innovation. The 2024 reform split R&D into ERIS (merged) and EIS schemes but the loose definition remains.
邊個用
Tech companies, software agencies, SMEs with any technical work. Estimated 90,000+ claims/year.
公眾損失
~£5B/year in credits paid. HMRC estimates £2-3B/year in "incorrect" claims. Some abuse: claims for basic web development, routine maintenance, cosmetic UI changes.
合法嗎
Legal if genuinely qualifying. But the definition is so loose that abuse is rampant. HMRC has been catching up since 2023 but many claims still slip through.
點改
Tighten R&D definition. Require independent technical assessment. Cap credits at genuine innovation. Claw back systematic over-claimers.
TRICK 15 · THE OFFSHORE NETWORK
Crown Dependencies — Jersey, Guernsey, Isle of Man
UK's own Crown Dependencies are some of the world's biggest tax havens. Zero corporation tax. No public beneficial ownership. Trust structures that hide wealth from every tax authority globally.
點玩
Set up a trust in Jersey. Move assets into the trust. The trust is outside UK IHT, outside UK CGT, outside UK income tax — but the UK government has constitutional control over Jersey. The UK could shut this down tomorrow but chooses not to. The City of London benefits from the offshore network. £1.2 trillion in assets managed through Jersey alone. The UK is not a victim of tax havens — the UK IS the tax haven network.
邊個用
Every wealthy family with estate planning. Every multinational using UK financial services. The City of London itself.
公眾損失
£10-20B+/year globally routed through UK Crown Dependencies. The UK could shut this down but chooses not to because the City profits from it.
合法嗎
100% legal. The UK designed these jurisdictions. They are UK territories.
點改
Public beneficial ownership registries in ALL Crown Dependencies (still not implemented despite 2018 commitment). End trust secrecy. Align Crown Dependency tax rules with UK rules. Or: revoke the constitutional autonomy that enables this.