A number of people have contacted me about wealth taxes.
The UK does not have a comprehensive, single wealth tax, but it does have several taxes on assets and wealth. Notably, the Wealth Tax Commission, which has no connection or link to the Government, found in 2020 that, if considering Inheritance Tax, Capital Gains Tax, Stamp Duty, and Stamp Duty Land Tax, the UK is among the top of the G7 countries for wealth taxes as a percentage of total wealth.
The UK system is designed to ensure, among other things, that the richest in our society pay their fair share on their wealth and assets, with the tax system taxing wealth across many different economic activities, including acquisition, holding, transfer and disposal of assets and income derived from assets. These tax levers generate substantial revenue; according to the Office for Budget Responsibility, over 2024/25, the Exchequer will accrue Inheritance Tax revenues of £8.3 billion, Capital Gains Tax revenues of £15.7 billion, and property transaction taxes of £14.1 billion.
Moreover, despite Government MPs standing on a manifesto pledging to avoid raising tax on “working people”, at Autumn Budget 2024, the Chancellor announced £40 billion of tax increases. As a result of this, the tax burden will rise to 37.5 per cent of GDP by 2028/29 – the highest level in the country’s history.
Any changes to taxation will be announced in future budgets. I will closely monitor changes to the tax regime.
