BREXIT and UK Car Insurance

BREXIT and UK Car Insurance

You may reading this and be a resident in Italy whilst driving around in car with UK number plates. (Hopefully you are not reading this whilst driving, but I think you understand my point!)

Up until BREXIT this would have been fine as long as your insurance allowed you unlimited travel in the EU, and as long as you got the necessary annual MOT or EU equivalent.

However things may be about to change…

I have spoken to some people over the summer whose insurance was up for renewal post BREXIT and that the insurance companies are now tightening up their terms and conditions and reducing the allowable time of travel in the EU, back down to the old 3 month limit.

The insurance companies quote the unreliability of BREXIT negotiations as their reasons for concern

So, it is worth checking, if you use a UK registered car in Italy on an unlimited time basis, as to whether you will be allowed to continue to take advantage of this arrangement moving ahead.

If you have an accident you could fall foul of any potential clauses in the contract terms. Better to be safe than sorry.

Let’s give a big thumb’s up to Europe

No matter what you may think about Britain and the EU’s relationship, we have to give the EU a big round of applause on their decision to tax Apple €13bn in light of their preferential tax arrangements in Ireland.

I will let it be known here and now that I am not a fan of trickle down economics. It does not work. The idea that we allow large corporates and already wealthy individuals to amass huge sums of money with preferential tax arrangements with the view that they will invest this money, build more companies, create more jobs etc and this will filter down to me and you and make us all more wealthy, is a philosophy that just doesn’t work.

The figures support this. At current standing corporate America holds $1.2 trillion in offshore accounts on which it pays no tax. This money which they have earned in countries throughout the world, but through clever accounting, can pay little to no tax on and choose whether to keep offshore or pay tax by repatriating it onshore. It comes as no surprise that they prefer the latter option.

It was reported that the €13bn which the EU has ordered Apple to pay back to Ireland in the recent ruling, would pay for the entire health service for one whole year.

Wealth equality is at its all-time worst levels.

In the 1970’s approximately 70% of the world’s wealth was spread between approximately 30% of the world’s population. This is not a good ratio.

Now, approximately 96% of the world’s wealth is spread between just 3% of the world’s population
This is clearly unacceptable and I believe, in part, has a lot to do with the rising far right in many countries around the world and which was one of the factors leading to BREXIT. The UK has one of the developed world’s worst inequality ratios. Italy is not much better.

Article by Graham Thornley – The Spectrum IFA Group
graham.thornley@spectrum-ifa.com
Cell.: +39 389 780 4171
www.spectrum-ifa.com

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