Think-Tank Calls For Wealth Tax in UK

June 13, 2016 Taxation in UK

LONDON – The UK should tax its wealthiest taxpayers, with the richest and riskiest individuals to face more taxes and closer scrutiny, according to a think-tank.

Late last week the UK-based think tank the Fabian Society issued a new report proposing that the UK levy a once-off tax on the assets of the country’s richest taxpayers.

In its report the Fabian Society called on the tax to be applied to all taxpayers with assets cumulatively valued at more than GBP 10 million, with a higher tax to be levied on the assets of taxpayers with assets valued at more than GBP 20 million.

It was also proposed that “low risk” taxpayers should be eligible to undergo a simple assessment of their assets’ value, via information in their previous tax returns, while “high risk” taxpayers should be subject to a comprehensive assessment.

The Fabian Society did not propose any particular rate for the tax, saying that it should be set by the government at the time of implementation.

No firm estimate was provided on the potential tax revenues which could be raised from the move, as no rate was proposed, and it is currently difficult to calculate the value of the richest taxpayers in the UK.

Photo By: Evan Bench