A recent poll by You Gov found that over 60% of the population supported a ‘wealth tax’ tax on those with assets in excess of £750,000, excluding pensions and the value of their residential property to help pay for coronavirus costs.
This weekend, Labour’s Shadow Chancellor Annelise Dodds supported a similar plan as Chancellor Rishi Sunak gears up for his Summer Statement (mini-budget) on Wednesday 08th July 2020. This will be his first since coronavirus lockdown.
We believe a ‘wealth tax will hit this country sooner rather than later given that many countries around the World already levy a wealth tax on people’s assets.
The UK already, indirectly has a ‘wealth tax’ called Annual Tax on Enveloped Dwellings (ATED) where residential property owned inside a corporate structure such as a limited company (to avoid stamp duty) is taxed each year based upon its value:
It is not a huge 'leap of faith' to use this model to tax all wealth in excess of a certain figure excluding your main residence and/or pension funds. It may not be this time, but we do expect a ‘wealth tax’ at some point and in particular when Labour get into power which they eventually will do so again.