UK Chancellor of the Exchequer John Healey is exploring wealth-targeted tax measures ahead of his first budget on October 28, as Prime Minister Andy Burnham’s government grapples with rising borrowing costs and growing spending commitments on social care and defense. Campaign groups including Oxfam and Tax Justice UK are pushing for a 2% annual levy on assets exceeding £10 million, which University of Warwick research estimates could generate roughly £24 billion per year. The Institute for Fiscal Studies has flagged significant obstacles, particularly the valuation of private assets such as businesses, art collections, and agricultural estates, as well as the liquidity problem for wealthy individuals whose wealth is tied up in illiquid holdings. More probable near-term measures include reforms to capital gains tax, inheritance tax, or pension tax relief for high earners, which would avoid the complex valuation challenges of a pure wealth tax.
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