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New proposal to introduce a 5% wealth tax in the UK Image

New proposal to introduce a 5% wealth tax in the UK

April 26, 2021

New proposal to introduce a 5% wealth tax in the UK to cover the ongoing costs of the pandemic. Is moving to Spain from UK back on the agenda?

 

A recent report by the UK’s Wealth Tax Commission in association with the London School of Economics and Warwick University concluded that the simplest, fairest and most efficient way of raising £260 billion in tax revenue to recoup the costs of the pandemic was via the introduction of a one-off wealth tax of 5% spread over 5 years.

 

The wealth tax would apply to all assets worth a net £0.5M including property. It would affect 8 million UK households and whilst hugely unpopular would lessen the need to carry out major tax reforms. This would be hugely unpopular at a time when the economy desperately needs fiscal stimulus. It would also be politically dangerous for any UK Government to raise taxes further given that its already one of the highest tax paying nations in the G7.

 

It would be interesting to see whether these developments accelerate the migration of Brits to Spain. If you do decide to exit the UK for Spain you need to ensure that you speak to financial advisers in Spain who have a clear understanding of how the UK and Spanish taxation systems work to minimise your tax liability in the country you have exited as well as your new country of residence.  Speak to a qualified financial planner at Fiduciary Wealth about your tax planning and wealth management needs in Spain.

 

More about tax planning: https://www.financialplanningspain.com/what-we-do/our-services/tax-planning