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General Atlantic CEO says higher taxes will not harm investing

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General Atlantic’s chief executive said higher taxation of capital gains in the United Kingdom would not affect his firm’s approach to investing, and that dealmaking would improve next year regardless of who won the US election.

Bill Ford, who heads the global private equity firm with $83bn in assets under management, added that companies with market capitalisations of more than $10bn would drive the IPO market going forward.

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“Investors want more market cap,” Ford said at the Financial Times Due Diligence conference in London, adding that small companies would struggle in the IPO market because “people want liquidity, and it’s very hard to generate sufficient liquidity when you’re a lower cap and you’re a long way from being included in an index”.

He added that the growth of the exchange traded funds market had been “negative for the IPO market” because “ETFs don’t buy IPOs, active investors buy IPOs”.

A drought in listings has persisted into this year in the wake of higher interest rates. Companies have raised about $26bn by going public in New York this year, roughly the amount that was being raised every six months in the years before the 2020-21 boom.

But Ford predicted that upcoming big-ticket listings, such as the expected flotation of Chinese budget fashion retailer Shein, could rouse activity.

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“It’s the kind of IPO that could excite investors and . . . reopen an IPO market.”

The slump in listings has been part of a wider dearth of dealmaking that Ford put down to higher rates and t elections taking place in the US and elsewhere in 2024.

But he said next year would be an “active year” once the political uncertainty had subsided and the “rate cycle has turned”. He added that “we’re looking at a soft-landing scenario”.

He said the prediction was not contingent on who won the US election, although “everybody is hoping for a change in the antitrust environment. I know in the US, probably more broadly, that will allow strategic buyers to be more active . . . but I think it’s irrespective of who wins the election.”

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Turning his attention to the taxation of carried interest — the share of profits that private equity investors get to keep on successful deals — Ford said he did not know that changes in the UK would “dramatically change what we do or our style of investing”.

Debates around the taxation of carried interest have long percolated through elections on both sides of the Atlantic.

The UK chancellor, Rachel Reeves, had put the industry on notice of her plans to close a “loophole” that has long allowed the windfalls to be taxed as capital gain. However, the FT recently reported that she was looking for a compromise after several warnings that boosting the rate could trigger an exodus of buyout executives.

“In the US the debate is, will it be the equivalent to ordinary income and what will that rate be? You know, everybody in the world would like lower taxes or higher taxes [depending on one’s political affiliation], but I don’t think it would change what we do,” said Ford.

“We’ve got to generate investment excellence for our clients to stay in business, we’ve got to produce the results they expect of us,” he added. “That more than taxes or anything else is what motivates us.”

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Germany is wrong to torpedo Schengen to buy off its populists

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Populist threats cannot be averted by knee-jerk reactions and populist responses (“German move to impose border checks ‘reopens old wounds’”, Report, October 7). As recent state elections confirmed, this sort of “populism-lite” policy response increases the social acceptability of neo-nationalism while leaving the underlying challenges unaddressed.

Any sustainable response to migration issues must be based on the explicit recognition that first, conflict and climate are likely to amplify migratory pressures; and second, the economic exclusion of refugees from society encourages the very behaviour that the populist right exploits in its propaganda.

Instead of torpedoing the Schengen system of frictionless travel, one of the main achievements of the European project, it would be helpful to reflect on the experience of societies that have managed to build prosperity on the integration of large numbers of foreign workers while insisting on the primacy of local traditions, with severe penalties for those who break the rules.

For Germany, two changes to existing policies could be the starting point for a migration policy that takes into account the interests of the state, its citizens and incoming migrants alike.

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First, when temporary permits are granted, the government and the migrant would sign an individual contract specifying the state’s support and the corresponding expectations of how the refugee should behave. Failure to comply would result in the rejection of any application for residency.

Second, migrants should be allowed to find work in order to (i) become self-sufficient (and reduce their dependence on welfare programmes); (ii) learn the language “on the job” and (iii) be spared the humiliation of being seen as a failure by their families, who often have sponsored their flight in the expectation of future remittances.

This early phase would thus constitute a “probationary period” in which society and the migrants themselves could assess the respective benefits of permanent residence.

Jan-Peter Olters
Managing Director, Olters, Herrnburg, Mecklenburg-Vorpommern, Germany

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Big Tech rally leaves S&P 500 within striking distance of record high

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Big Tech rally leaves S&P 500 within striking distance of record high

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FT Crossword: Number 17,863

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FT Crossword: Number 17,863

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Huge restaurant chain to deliver Christmas dinner feast to your door this festive season

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Huge restaurant chain to deliver Christmas dinner feast to your door this festive season

THIS massive restaurant chain is to deliver a Christmas dinner feast to your door this festive season.

Côte restaurants have launched their indulgent range of Christmas meals designed by Gordon Ramsay’s former Executive Chef.

Côte restaurants have launched their indulgent range of Christmas meals

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Côte restaurants have launched their indulgent range of Christmas mealsCredit: Cote
The Côte Festive Turkey Feast

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The Côte Festive Turkey FeastCredit: Cote
The Côte Festive Chateaubriand Feast

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The Côte Festive Chateaubriand FeastCredit: Cote

Steve Allen – who previously ran Michelin-starred restaurants – has focused on fresh seasonal ingredients to showcase the classics, with a French twist, at Christmas.

This Christmas the premium delivery Côte at Home service has come up with three luxury Christmas feasts complete with simple instructions – so there’s less stress for the season.

In less than three hours, and with minimal fuss, the luxurious meals are ready to be served.

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All three Côte at Home Christmas boxes have been specially designed so that dishes can be heated at the same temperature, avoiding oven hassle and more time to relax with loved ones.

Three of the Côte at Home Christmas boxes

The Côte Festive Turkey Feast (£124.95) serves up to six people and includes:

  • A 2-2.5kg marinated British turkey breast from Larchwood Farm, East Anglia as the traditional centrepiece
  • Pigs in Blankets with a spiced honey glaze
  • Spiced Braised Red Cabbage
  • Brussels Sprouts au Gratin
  • Roast Potatoes
  • Rainbow Roasted Carrots
  • Sage & Onion stuffing
  • Shallot & Thyme Jus

The second box of Christmas comes with the same side dishes, but you and your guests will dine on 1kg Chateaubriand instead.

The Côte Festive Chateaubriand Feast serves up to six and costs £154.95.

Or you can opt for the third box which is a vegetarian feast for two costing £54.95, featuring:

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  • Two individual Butternut Squash Tarte Tatin’s with toasted almonds and Chèvre Buchette goat’s cheese served with all the trimmings
  • Spiced Braised Red Cabbage
  • Brussels Sprouts au Gratin
  • Roast Potatoes
  • Rainbow Roasted Carrots
  • Sage & Onion stuffing
  • Shallot & Thyme Jus

There’s also a selection of delicious festive starters including:

  • Chicken Liver Pâté (£8.95), infused with Grand Marnier and served with a fig chutney
  • Truffled Pumpkin Soup (£5.95) topped with crumbled chestnuts and pumpkin seeds
  • Brûlée Camembert (£5.95) which is sprinkled with sugar and caramelised to create a hard sweet crust, with grape chutney

All starters come with a freshly baked demi baguette.

Côte at Home also offers a selection of festive desserts:

  • Pear & Almond Frangipane Tart with winter berry coulis (£8.95)
  • Brandy Butter Madeleines with whipped brandy butter (£8.95)
  • Bûche de Noël, a traditional chocolate roulade with pistachio cream (£15.95)

If you want to fill the fridge with other meals during the festive season, Côte’s chefs have designed another two exclusive boxes.

These mean you have more time to sit back and less time needing to focus on the big shop.

Brûlée Camembert is sprinkled with sugar and caramelised to create a hard sweet crust, with grape chutney

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Brûlée Camembert is sprinkled with sugar and caramelised to create a hard sweet crust, with grape chutneyCredit: Cote
Truffled Pumpkin Soup topped with crumbled chestnuts and pumpkin seeds

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Truffled Pumpkin Soup topped with crumbled chestnuts and pumpkin seedsCredit: Cote
Chicken Liver Pâté infused with Grand Marnier and served with a fig chutney

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Chicken Liver Pâté infused with Grand Marnier and served with a fig chutneyCredit: Cote

The Côte Christmas Breakfast Box (£64.95), for two or more people

You can enjoy a Continental breakfast of croissants, mini jams, French bread and butter, yoghurts, our Côte granola and Valencian orange juice.

There’s also smoked salmon, Comté cheese and Jambon de Savoie ham, alongside Cumberland sausages, Boudin Noir black pudding, Dingley Dell smoked back bacon and free-range eggs.

The Côte Christmas Evening Box (£74.95), for two or more people

Enjoy a selection of French cheeses, charcuterie and luxury fish perfect for a cold buffet of luxury food. All accompanied by crackers, confit jams, cornichons, olives and sourdough demi baguette.

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Côte Christmas Drinks Package (£84.25)

Côte at Home also offers a range of drinks gift packages this year, alongside some chocolate and Champagne gifting options.

Start (or end) the day with their exclusive house blend coffee, followed by Buck’s Fizz courtesy of Montaudon Champagne and Valencian orange juice.

Côte’s Les Mougeottes Pinot Noir pairs perfectly with your main meal, and there’s a bottle of Quinta do Crasto Port to enjoy alongside desserts of one of our French cheese boxes.

There’s also a range of wine packages – mixed, white and red wines, three bottles of exclusive French wine for £39.95.

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And a Champagne and Crémant package for £59.95.

If you’re looking for a smaller gift, this year Côte are partnering with Montezuma chocolates and offering their ‘Into the Dark’ and ‘Dairy Beloved’ gift boxes with your choice of Champagne, Crémant or Non-Alcoholic Sparkling Rosé for £34.95 – £39.95.

Executive Chef, Steve said: “Our Côte at Home Christmas boxes have everything you need to creative a fabulous festive feast.

“From seasonal starters through to the main event and show-stopping desserts, you’ll find a selection of classic Christmas dishes with a touch of French flair.

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“What’s more, everything is effortless to prepare in your own kitchen, so you won’t miss out on that all-important time with friends and family. Joyeux Noël!”

Delivered direct to your door Côte at Home festive menus and dishes are now on sale with delivery available nationwide from 18th – 23rd December.

Visit coteathome.co.uk to book your delivery and view the complete Christmas menu.

Brandy Butter Madeleines with whipped brandy butter

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Brandy Butter Madeleines with whipped brandy butterCredit: Cote
Bûche de Noël, a traditional chocolate roulade with pistachio cream

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Bûche de Noël, a traditional chocolate roulade with pistachio creamCredit: Cote
Pear & Almond Frangipane Tart with winter berry coulis

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Pear & Almond Frangipane Tart with winter berry coulisCredit: Cote

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Amount UK’s richest pay in income tax revealed

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Amount UK's richest pay in income tax revealed

Sixty of the wealthiest people in the UK collectively contributed more than £3bn a year in income tax, the BBC has learned.

The amount of income tax they paid is roughly equivalent to around two-thirds of Labour’s entire additional spending commitments in their manifesto earlier this year.

Each of the 60 individuals had an income of at least £50m a year in 2021/22, but many will have earned far more and probably pay large amounts in other taxes too.

There is concern tax rises in this month’s Budget could prompt an exit of the super-rich, hurting UK finances. Labour ruled out income tax changes, but Chancellor Rachel Reeves left the door open for other tax hikes.

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A Treasury spokesperson said the government was committed to “addressing unfairness in the tax system”.

Swiss banking giant UBS predicted in July the UK would lose half its millionaires by 2028, partly as a result of some switching to low-tax countries.

The Institute for Fiscal Studies said the Treasury needed to be aware that a small number of this super-rich group leaving the country would create a “relatively big hole in its finances”.

But the Green Party argued claims taxing the wealthy more would lead to them leaving the UK were not credible.

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The BBC reported last month about concerns within the Treasury that one of the main fundraisers for those pledges, the scrapping of the non-dom scheme, would raise far less money than first hoped.

Scrapping that scheme, which allows a UK resident to be registered abroad for tax purposes, was initially thought to be worth £1bn.

Government ministers have also said the previous Conservative government left a £22bn “black hole” in the public finances.

This has led to discussions within government about potential tax increases in the forthcoming Budget and in August the chancellor refused to rule out an increase in capital gains tax.

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Stuart Adam, a senior economist at the IFS, said reports of wealthy individuals leaving the UK were currently just anecdotal.

But he warned that it would not take a mass exodus to cause issues for the public coffers, as “tax payments are very concentrated on a small number of people”.

“There’s clearly a risk there that Rachel Reeves has to think about,” Mr Adam said.

“Some of the tax changes that have been speculated are very concentrated on those at the top of the income distribution.”

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There could “be more at stake from these people than just the income tax they’re paying” as the individuals in question would likely be paying large amounts in other forms of taxation such as capital gains, Mr Adam added.

Green Party co-leader Carla Denyer warned against taking threats by the super rich to leave the country seriously.

“This didn’t happen when changes were made to non-dom status in 2017,” she said.

“There are lots of reasons that the wealthy choose to live in the UK, including work, family and culture, and many are happy to pay a bit more if it means a happier and healthier society.”

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The figures, which were compiled by HMRC, have been obtained through Freedom of Information laws and relate to 2021/22, the latest year for which data is available.

That year, the UK had a total income tax receipt of £225bn, with contributions from some 33m taxpayers.

The 60 people with incomes of more than £50m made up just 0.0002% of UK taxpayers and together paid 1.4% of the income tax receipt.

HMRC initially blocked the release of the information on the grounds that disclosing the figures would identify the individuals in question.

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But the authority agreed to release the data after further requests by the BBC.

The IFS has said a way to dissuade wealthy individuals from leaving the UK could be to introduce an “exit tax”.

Some other countries “say that if you leave the UK, we will tax you on gains that have accrued while you’re here, even if you don’t sell the asset until later”, Mr Adam said.

“And symmetrically, we will exempt people who built up gains before they came to the UK, even if they sell assets while they’re here.”

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A Treasury spokesperson said: “We are addressing unfairness in the tax system so we can raise the revenue to rebuild our public services.

“That is why we are removing the outdated non-dom tax regime and replacing it with a new internationally competitive residence-based regime focused on attracting the best talent and investment to the UK.”

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Three ways to get a glowing complexion at home without needing pricey salon services

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Three ways to get a glowing complexion at home without needing pricey salon services

REGULAR facials help keep your skin in top condition especially during cold and windy weather.

But rather than fork out on pricey salon services, treat yourself at home instead.

We have three ways to care for your skin at home without needing expensive facials

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We have three ways to care for your skin at home without needing expensive facialsCredit: Getty

Here’s how to get a glowing complexion on a budget . . . 

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CLEANSE: Start by getting rid of make-up and grime.

You can use your own regular cleanser, or baby oil is a cheap product that will clean your face.

Then fill your sink with hot water and dip in a clean flannel or face cloth.

Wring out the cloth before laying it over your face. The steam should help open your pores.

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You can then use the cloth to exfoliate and buff your face by rubbing in small gentle circles over the skin.

SPECIAL CARE: When you head for a facial, your skin is usually lavished in extra products to give it a nice boost.

Retinol can help reduce the appearance of fine lines.

Aldi’s Lacura retinol toner, £2.99, is a budget alternative to expensive brands.

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Serums are absorbed by the skin and applied after cleansing and toning.

I’m an aesthetician – everyone thinks they need to stop exfoliating & moisturise more for winter skin but it’s the opposite

Try a vitamin C serum to help boost collagen production and make skin feel more supple.

Tesco’s Skin Saints vitamin C serum is £4.

MOISTURISE: As temperatures drop, your skin can quickly dry out.

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Keep it well moisturised to plump your face and help it looking healthy.

Hyaluronic acid helps dry skin look revived — Tesco’s Skin Saints version is £4.

No need to splash out on exra pricey moisturisers. Vaseline works well and a 50ml tub is £1.79 from Superdrug.

Finish with an SPF to protect your skin from sun damage all year round.

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Tesco’s kind & pure daily moisturiser and SPF 15, £2, is an affordable everyday option.

  • All prices on page correct at time of going to press. Deals and offers subject to availability.

Deal of the day

Save £50 on the Breville Elite Diamond clothes steamer

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Save £50 on the Breville Elite Diamond clothes steamerCredit: Supplied

DRY your clothes in rainy weather with this three-tier heated airer, down from £94.99 to £59.99 at The Range.

SAVE: £35

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Cheap treat

Lyle’s new gooey golden syrup flapjacks are £2.50 for a pack of five at Tesco

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Lyle’s new gooey golden syrup flapjacks are £2.50 for a pack of five at TescoCredit: Supplied

TUCK into Lyle’s new gooey golden syrup flapjacks, £2.50 for a pack of five at Tesco.

What’s new?

POP Holy Moly’s new cheese dips in the microwave for a couple of minutes to get a warm accompaniment perfect for nachos.

The range is £1.75 with a Nectar card at Sainsbury’s, down from £2.75.

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Top swap

Ganni’s buckle ballerinas are £325

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Ganni’s buckle ballerinas are £325Credit: Supplied
Primark has similar flats, for £16

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Primark has similar flats, for £16Credit: Supplied

PUT some style in your step with Ganni’s buckle ballerinas, £325 at ganni.com.

Or head to Primark and bag its similar flats, for £16.

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SAVE: £309

Little helper

IN Morrisons toy sale, customers with More cards can save up to 50 per cent on brands such as Hot Wheels and Barbie.

This Barbie Dollhouse set is now £25, was £50.

Shop & save

This Dunelm throw is down to £25.20

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This Dunelm throw is down to £25.20Credit: Supplied

SNUGGLE up on the sofa on dark evenings with this throw, down from £36 to £25.20 at Dunelm.

SAVE: £10.80

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LIDL’S reward scheme has been updated – customers who spend £250 in a month can get ten per cent off their weekly shop.

PLAY NOW TO WIN £200

Join thousands of readers taking part in The Sun Raffle

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Join thousands of readers taking part in The Sun Raffle

JOIN thousands of readers taking part in The Sun Raffle.

Every month we’re giving away £100 to 250 lucky readers – whether you’re saving up or just in need of some extra cash, The Sun could have you covered.

Every Sun Savers code entered equals one Raffle ticket.

The more codes you enter, the more tickets you’ll earn and the more chance you will have of winning!

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