Unwittingly, I may have killed my 8yo’s prospects of a political career even before she could even say Hard Working Families. How? Well when she was born Gordon Brown was giving out money to babies in the form of Child Trust Funds. I did the paperwork and put the money into the most unimaginative thing possible – a cheap FTSE100 tracker fund, with the idea that I would think more about where it should be invested at a later time.
What’s the problem? Well, in short, this:
She will never be able to say that she didn’t have a trust fund.
She will never be able to say that she never benefitted from offshore investments.
When the press has a go at her evil financier father who must’ve known what he was doing, she should best not defend me so as not to put me ‘in play’.
It would be a real mistake for her to tell the press that commingled investment funds are domiciled offshore typically so that the owners of units don’t get taxed twice for owning underlying shares and that she would be as liable for tax through her offshore holding as she would have been by holding the underlying shares direct.
She should by no means tell people that actively choosing to buy a product (like, let’s say, a book over the Internet, or a fancy branded coffee) is probably more ethically dubious than investing in commingled investment funds offshore that are registered with the tax authorities and push all income and capital through the tax system in *exactly the same manner as investing directly onshore* would, but at a fraction of the cost given economies of scale.
Because that would just be digging herself a deeper hole.
That’s all too complicated, and she would then undoubtedly have to apologise for a massive and self-inflicted communications failure.
On the other hand, there is the chance that if she went into politics she possibly might embark upon a programme of government that is premised on economic illiteracy, be overly political in the way she chose to distribute resources, and call periodic imbecilic referenda.
So perhaps I’ve done the rest of us a favour.