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UK Budget Means Bank Accounts Can Now Be Raided

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DAILY PRICE REPORT

Today’s AM fix was USD 1,286.50, EUR 932.45 and GBP 772.67 per ounce.                   

Yesterday’s AM fix was USD 1,294.00, EUR 939.86 and GBP 777.78 per ounce.


Gold fell $9.40 or 0.73% yesterday to $1,283.30/oz. Silver remained unchanged at $19.79/oz.  


Webinar: Dr Marc Faber On Gold, Silver and Asset Allocation In An Uncertain World

This Friday , April 4th, Dr Marc Faber will give insights into his strategies for protecting and growing wealth in 2014 and beyond. Register today and don't miss this opportunity to hear one of the world's most respected investment experts.

Gold hovered near a 7 week low in London as investors await the jobs report Friday and clarification regarding the Fed’s policy stance after mixed signals from Yellen in recent days.  While gold fell in March, it logged a 6.8% gain for the first quarter and is one of the best performing assets year to date.


Gold in U.S. Dollars. Q1, 2014 (Thomson Reuters)

Fed Chair Janet Yellen comments yesterday were dovish but failed to support gold. She said  that the U.S. will need increased monetary stimulus for “some time” ahead of U.S. manufacturing data today.

The Fed Chair said March 19th that the central bank may start raising the benchmark interest rate about six months after terminating its bond-buying program later this year. However, many doubt if the struggling U.S. economy is robust enough to handle any more tapering and even mildly higher interest rates.


  

Silver in US Dollars. Q1, 2014 (Thomson Reuters)

Geopolitical risk remains but is not a focus of financial markets for now.  Further tension between Russia and the West, in the Middle East and in the Far East.

UK Bank Accounts Can Be Raided After Budget
HM Revenue & Customs will be able to directly access taxpayers’ bank accounts in order to recover unpaid tax, under measures announced in this month’s Budget speech.


The little noticed move gives HMRC similar powers to raid bank accounts and recover tax and tax credit debts in excess of £1,000.

 

In the Budget Red Book, the measure is described as follows:

 

“The government will modernise and strengthen HMRC’s debt collection powers to recover financial assets from the bank accounts of debtors who owe over £1,000 of tax or tax credit debts, have the financial means to pay, and have been contacted multiple times by HMRC to pay.”


At the moment, if HMRC want to seize your property or cash, they have to take you to court, win and then get a court order. Now, after a couple of warning letters and a phone call, they can do it in conjunction with your bank, with a touch of a button.

Crucially, there’s no safeguard built into this system. There should be a transparent and fair process and an appeals process.

Now, if HMRC officials decide you owe them cash, they can just take it directly from your bank account. If you haven't managed to reach agreement with them, then you'll just wake up one morning, check your bank account, and find your cash is gone. No insolvency proceedings, asset freezes, debt collection agencies or court proceedings. Just the government taking out whatever it believes it is owed.

This significant HMRC legislative change was buried deep in the Budget document and comes amid preparations by international monetary and financial authorities and the Bank of England for
bail-ins.

 

The UK government can now confiscate UK citizens money directly from bank accounts while it decides if you have broken the law or not. This is a significant power grab and this and the real risk of bail-ins are another reason to own physical gold outside the banking system, in jurisdictions that respect private property.



Webinar: Dr Marc Faber On Gold, Silver and Asset Allocation In An Uncertain World

This Friday only, April 4th, Dr Marc Faber will give insights into his strategies for protecting and growing wealth in 2014 and beyond. Register today and don't miss this opportunity to hear one of the world's most respected investment experts.

In this webinar, some of the topics covered with Dr Faber include:

 

Asian Century? - Western collapse or stagnation?

Events in Ukraine - Allocations to precious metals?

How to own precious metals?

Dollar cost average or lump sum?

Take profits/ rebalance or buy and hold for long term?

When to sell?

Favoured asset allocation?

Other investment and business opportunities?


Please join us for Dr Faber’s webinar this Friday, April 4th, 2014 at 0900 BST.


 

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Tue, 04/01/2014 - 19:14 | 4615389 SAT 800
SAT 800's picture

Hurry up, bonny Scotland, get that Independence on paper and signed; then join in the laughter when the bloody english die of natural stupidity.

Tue, 04/01/2014 - 16:25 | 4614916 Save_America1st
Save_America1st's picture

who leaves fiat in the banking system anymore???  You'll lose what you deserve to lose if you keep excess funds sitting in there just waiting to be vacuumed out by the scumbag government sociopaths. 

Tue, 04/01/2014 - 19:10 | 4615376 SAT 800
SAT 800's picture

"---many doubt if the struggling US economy is strong enough to withstand any tapering, or even slightly higher interest rates".  All the sane observers are convinced the US Economy couldn't withstand a shove from a healthy two year old. there, fixed it for ya.

Tue, 04/01/2014 - 15:30 | 4614688 ebworthen
ebworthen's picture

Bail in's = The new patriotism of the 21st Century

Tue, 04/01/2014 - 14:21 | 4614410 agent default
agent default's picture

And yet no bank run.  Stop complaining about he government, they know who they are dealing with, and treating us accordingly.  If this stands, it will be our fault not theirs.

Tue, 04/01/2014 - 13:30 | 4614208 No Euros please...
No Euros please we're British's picture

Ok, I have to comment, as this is the 2nd time a zh article has failed to mention that HMRC can only do this if they can leave more than £5000 in the account. I'm safe, although when did HMRC apply their own rules anyway? They much prefer to torture you with threats, their typical response time to a letter is 6 weeks, and if you're lucky they might even mention something pertinent to your case, which is why disputes last years, not because tax evaders hire clever accountants. It takes 3 years for them to string together a good story. By that time they hope you lost all your original paperwork.

Tue, 04/01/2014 - 15:33 | 4614702 ebworthen
ebworthen's picture

Do you really trust that they will leave that £5000 alone?

No doubt the amount can be adjusted by decree overnight, however; it is the precedent that should incense you.

Tue, 04/01/2014 - 15:18 | 4614447 Mi Naem
Mi Naem's picture

NoEuros, I see you're fairly new here. 

The primary objective of threads posted at ZH, after making a few bucks, is destruction of the established system. The "author" of most articles, Tyler Durden, could not have a better moniker - for what that means, see the movie "Fight Club" if you haven't already. 

Hyperbole, cherry picking facts, etc. are all fair in the propaganda wars here - the establishment has used them for ever. 

BTW, thanks for sharing the part about "HMRC can only do this if they can leave more than £5000 in the account".  A little truthiness doesn't hurt either. 

Tue, 04/01/2014 - 15:48 | 4614772 No Euros please...
No Euros please we're British's picture

Mi Naem, you must be newer than me, you just broke  the first rule of fight club. 

Tue, 04/01/2014 - 13:28 | 4614201 lasvegaspersona
lasvegaspersona's picture

assessing today's gold market is a fool's mission....

The price is no longer related in any way to the supply and demand of the metal...it is controlled by the supply of paper....and anyone who still thinks 'they can't just keep selling naked, they'll eventually have to buy it back and will lose money'....has no understanding of the market and should lick their wounds and retire to their den.

The gold derivative market is central to the global financial system. It can and will be controlled to keep that system stable. There is no end to the currency that will be sacrificed to do so.

Tue, 04/01/2014 - 12:54 | 4614089 medium giraffe
medium giraffe's picture

It has long been understood in Britain that the taxman owns all of the money and occasionally lets you have some out of the goodness of his heart.

Tue, 04/01/2014 - 19:08 | 4615373 Grouchy Marx
Grouchy Marx's picture

You are too generous. The taxman only lets you keep enough to maintain the union of body and soul. A starved taxpayer means a tragic drop in revenue. 

Tue, 04/01/2014 - 12:41 | 4614044 RaceToTheBottom
RaceToTheBottom's picture

Dressing down has become the new dressing up.....

Tue, 04/01/2014 - 12:21 | 4613972 world_debt_slave
world_debt_slave's picture

California is already taking money out of bank accounts even when not in the state.

Tue, 04/01/2014 - 19:23 | 4615420 Buck Johnson
Buck Johnson's picture

They don't realize that people will stop putting cash into bank accounts.

Tue, 04/01/2014 - 13:00 | 4614111 daveO
daveO's picture

They tried to audit me 25 yrs ago. I'd never even been to California, at that time. Gold looks better everyday.

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