The UK currently has many tax reviews afoot, including a report pending on whether it is time for a wealth tax. Clearly, there is a need to raise additional revenues for the exchequer in the short to medium term. The potential revenues raised by introducing a new wealth tax need to be weighed against those lost by deterring inward investment and encouraging capital flight from the UK. A new wealth tax is out of step with increased global tax competition and the repeal of wealth taxes internationally. To rebuild public finances, it would be better to ensure the current capital tax system is fit for purpose, and take a fresh look at some of the existing reliefs, such as the automatic CGT uplift on death.
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The UK currently has many tax reviews afoot, including a report pending on whether it is time for a wealth tax. Clearly, there is a need to raise additional revenues for the exchequer in the short to medium term. The potential revenues raised by introducing a new wealth tax need to be weighed against those lost by deterring inward investment and encouraging capital flight from the UK. A new wealth tax is out of step with increased global tax competition and the repeal of wealth taxes internationally. To rebuild public finances, it would be better to ensure the current capital tax system is fit for purpose, and take a fresh look at some of the existing reliefs, such as the automatic CGT uplift on death.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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