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37. Asset heavy, income light people are not necessarily "rich"
Totally correct. However to the extent that someone has chosen to invest in assets that earn no cash but provide some other service to them, that is their choice. Along comes this closing of the income tax loophole and those folk suddenly find they have too many assets relative to their ability to pay what amounts to an increased rates bill. Now we’ve already dealt with oldies by ring-fencing them and making it in effect an estate duty. But for others there are choices to make - get more cash-generating assets and have less in cash-lite ones. But because we’re phasing this in there is time, the tax liabilities will not just leap overnight but be staged in a way that doesn’t collapse house prices for example. So that enables you to reposition.
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