Member Since: 23rd Nov 2013
7th Mar 2021
Not sure I like the idea of an annual wealth tax as it could create a serious "cash flow" problems for tax payers depending on how the wealth is invested.
My preference has always been for a 20% inheritance tax with a low threshold on assets when the surviving spouse/partner dies.
Currently 5 billion is raised in IHT from around just 25,000 people annually.
500,000 people sadly die each year and if lets say the average wealth is around 200,000 (quite likely given average house prices) then the extra 475,000 IHT payers could raise around 19 billion a year.
No doubt many people would squeal but if the money has to come from somewhere why not from here?
13th Jul 2017
Might even ask Portia for a dance !!!!
13th Jul 2017
Absolutely thrilled all the letters and emails I and many others have inundated MPs with seems to have been well worth the effort. So glad I haven't been giving my clients ear ache over this for the last 12 months.
I can now carry on doing a job I really enjoy without an enormous cloud hanging over the near future.
I feel like dancing .. yeah!!
14th Jul 2016
My advice to the new chancellor would be to do all he can to simplify the tax system.
Osborne started out with this objective and it is hard to know how he then got it so spectacularly wrong introducing new rules that were grotesquely complicated; amending the tax relief on loan interest for landlords being an absolute classic.
He can start be kicking quarterly digital tax returns into touch. Why ask for 4 returns a year when annual returns and payments on account work perfectly well already.
When I was studying Economics at University in the 70s my pet topic was tax reduction and tax simplification. Pretty sad, I know!
I am sure you could create a 20% tax system where all the key taxes were 20% and you just adjusted thresholds, scope and exemptions.
So income tax, corporation tax, VAT, Inheritance Tax, Capital Gains Tax, National Insurance (10% Employers and 10% Employees contributions at all taxable income levels) all at 20%. Simples!
Imagine all the complications of higher rate tax relief on pension contributions, on loan interest etc etc all gone and everyone on an even playing field.
I'm sure the simplification would incentivise with the result that the tax take might even go up (history tends to show higher tax takes from lower tax rates).
I'm also sure it wouldn't put accountants out of work; there has been work for accountants for ever and always will be.