One-off wealth tax ‘could raise quarter of a trillion pounds’

The Wealth Tax Commission has published a report which, as Lord Gus O’Donnell, former Permanent Secretary to HM Treasury and head of the Civil Service, notes in the foreword, concludes that ‘an annual wealth tax is a non-starter in the UK and we should fix our existing taxes on wealth instead’. However, the report says ‘a one-off wealth tax is a very different proposition. They think it would work and could raise one-quarter of a trillion pounds over five years. This is a striking conclusion and it comes at a crucial juncture.

‘This report will not change everyone’s mind, but I welcome it as an important contribution to the debate,’ writes O’Donnell. ‘It has been led by a team with the essential mix of skills in economics, tax law and administration, who approached the subject with an open mind.’

The Wealth Tax Committee comprises tax barrister Emma Chamberlain OBE (Pump Court Tax Chambers), Professor Advani (economist at Warwick and IFS) and Professor Summers (associate profession of law at the London School of Economics.