Taxes on Savings Outstrip Taxes on Sinning in the UK
June 26, 2014 Taxation in UK
LONDON – Homeowners and individuals receiving an inheritance in the UK will soon be paying more tax than individuals buying cigarettes and alcohol.
Earlier this week, information released by the Treasury of the UK showed that by the end of the 2016 the cumulative tax revenues from inheritance tax, land tax and stamp duties on the purchase of shares will exceed the tax revenues from the sale of alcohol and tobacco, leading some experts to claim that “savers” are facing higher taxes than “sinners”.
According to this latest available information, by the end of 2016 the tax collection from “savers” will reach GBP 21.9 billion, while the taxes faced by sinners will only be GBP 21 billion.
The disparity between the taxes faced by savers and sinners has spurred a number of Member of Parliament to call on the government to reform the tax treatment of property sales and inheritance, in order to ease the burdens for first home buyers, and individuals who are bequeathed an estate which does not contain luxury properties.
However, the government has already responded to the demands saying that the figures are do not paint the whole picture and do not take into account measures already being taken to reduce the taxes paid by middle income taxpayers.
By: Fried Dough