We explore some common questions around Wealth Tax in the
UK.
An influential body of academics and tax experts has published a
detailed report which explores whether a wealth tax should be
introduced into the UK and, if so, how it should work.
The Wealth Tax Commission, which published the report,
recommends the government should consider introducing a one-off
wealth tax, but concludes that an annual wealth tax would not be as
viable.
What could a one-off wealth tax look like?
The proposed form of tax would apply to an individual's net
assets (i.e. assets less liabilities) above a certain exempt
threshold. The tax would apply to the open market value of all
assets including the family home, farmland, businesses and even
pensions. Personal possessions with a value over £3,000 would
also be included. There would be no reliefs. Instead, the system
would allow deferral of payment of tax
in certain cases.
