Wealth Tax30 Aug 2020 16:13
In my opinion, there is a real danger of the UK government imposing a "net wealth tax" targeting the most wealthiest in the UK. ( so a tax in relation an individual’s net wealth)
The term ‘wealth tax’ can refer to a broad range of taxes. The common feature of these is that they all are calculated by reference to capital and are charged without the need for a triggering event (such as a ‘disposal’ for capital gains tax purposes)
Shares, securities, mutual funds and fixed deposits, which are generally termed as 'productive assets', could be exempt from a wealth tax system but then of course they may not!
Wealth taxes should be implemented cautiously. Whilst they can ensure a steady stream of revenue, they also risk becoming a false economy if they end up encouraging wealthy and internationally mobile individuals to vote with their feet and leave the country.
Time we tell. ALB