Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, November 30, 2020

‘Wealth tax risks worsening defective CGT system’

Estate planning"The UK system of taxing capital is broken but introducing a wealth tax risks making the situation worse, a former top civil servant at HM Revenue & Customs said." 

Edward Troup, previously first permanent secretary at HMRC, suggested that MPs tackle the already existing defects of the wealth tax system before any further steps are taken.

“We have a lot of taxes on various aspects of capital . . . none of them work properly,” said Sir Edward on Wednesday, citing capital gains, inheritance and council taxes as examples. “It’s always better to try and fix what you’ve got than to pile something else on top of it.”

Sir Edward suggested that politicians shift their focus to considering whether the current wealth taxing system is working correctly.

Sir Edward also stated, “There is a real risk that we are looking at putting something new and difficult and probably pretty inefficient [a wealth tax] on top of some already non-working taxes.”

It appears that the debate surrounding new wealth taxes continues to intensify during the pandemic pushing the government to consider how to repair the damage.

See Emma Agyemang, Wealth tax risks worsening defective CGT system’, Financial Times (UK), November 19, 2020.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2020/11/wealth-tax-risks-worsening-defective-cgt-system.html

Current Affairs, Current Events, Estate Planning - Generally, Estate Tax, Income Tax | Permalink

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