The Wealth Tax Commission’s final report

The Wealth Tax Commission recently published its much-awaited study into the possibility of a UK wealth tax. The report endorses a one-off wealth tax over an annual tax, but it argues that reform of existing taxes would be a better route forward. That notwithstanding, the report projects that a flat rate of 5% on assets over £500,000 on an ‘all-inclusive’ tax base could raise at least £260bn, and it suggests that, to minimise opportunities for avoidance, any one-off wealth tax should be introduced without prior warning or perhaps retroactively. It is, though, unlikely that the current government will introduce a wealth tax in any form, let alone one as dramatic as that proposed in this report. Changes to other taxes are more likely and taxpayers may wish to consider the implications of those changes.