Analysis: Wealth tax 'difficult' and could backfire

Potential wealth tax revenue ‘remains highly uncertain’, experts warn

Sahar Nazir
clock • 8 min read

The UK already has wealth-related taxes, including capital gains tax (CGT), inheritance tax (IHT) and stamp duty. However, the government is facing pressure to introduce an annual tax on the stock of household wealth – also known as a wealth tax.

Late last month (29 July), more than 30 economists from UK and international universities wrote an open letter calling for a wealth tax in the UK. According to the economists, wealth is currently "largely untouched" by taxation – creating a system in which the "richest continue to grow richer, enabled and subsidised by the tax system, public services and financial systems". Pressure has mounted even as reports have suggested that chancellor Rachel Reeves is likely to reject a wealth tax over exodus fears. While some have thrown their backing behind a wealth tax, other experts have ...

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