Think-Tank Calls for Massive Tax Shakeup in UK

May 9, 2018 Taxation in UK

tax windfall for millennialsLONDON – Give millennials cash, and tax baby-boomers to fund it, says think-tank.

The UK think-tank, the Resolution Foundation, has proposed a series of extensive tax overhauls, aimed at repairing the “broken” intergenerational contract between millennials and baby-boomers.

The headline suggestion of the Foundation was to bestow upon all taxpayers a windfall of GBP 10 000 when they turn 25, with the intent that the funds could be used to upskill, as a deposit for a house, or to start a business.

The payment would be funded by an overhaul to the inheritance tax system, which would see a new tax rate of 20 percent on all gifts in a lifetime to a total of GBP 500 000, and a rate of 30 percent on all further gifts.

Further, the Foundation called for council taxes to be scrapped, but replaced with a graduated tax on the value of a property.

The tax could be levied at 0.85 percent of the value of a house on any property worth more than the cheapest 10 percent of property, with the rate rising on more expensive houses.

In addition, more funds will also be raised by requiring that any taxpayers who work past the standard retirement age of 65, would still need to pay the NHS levy.

The changes to property tax and the NHS levy payments would be used to fund the rising costs of caring for ageing taxpayers.