‘Naive and arrogant’: Why a wealth tax in the UK would fail, according to experts
Why experts think a UK wealth tax is ‘naive’
- Experts caution that a wealth tax to address the UK's public finance deficit would be "naive" and largely ineffective, citing a lack of success stories internationally.
- Leading tax lawyer Dan Neidle suggests a wealth tax could detrimentally affect the UK's overall tax revenue, arguing it is arrogant to assume the UK could succeed where other nations have failed.
- Economists highlight the significant practical challenges of implementing a wealth tax, including complex asset valuation, high administrative costs, and potential liquidity issues for taxpayers.
- IFS economist Stuart Adam said most developed countries have abandoned annual wealth taxes, with experts advocating for alternative reforms to capital income taxes as more realistic.
- Concerns exist that a wealth tax might prompt wealthy individuals to reallocate assets or alter their residency status, potentially leading to a net loss for the Treasury rather than increased revenue.