Talk of a wealth tax to raise billions may sound appealing in these straitened economic times, but it is fraught with complexity and risks the law of unintended consequences, argues Anthony Whatling, managing director, Alvarez & Marsal Tax
While the Green Party’s historic win in the Gorton and Denton by-election was weeks ago now, its political aftershocks are still being felt. The party has since gained tens of thousands of new members, its poll ratings have surged, and leader Zack Polanski has used the momentum to push the Green Party’s policy agenda into the mainstream. Wealthy individuals and their advisers are rightly paying close attention.
Chief among the policies raising concern for the ultra-wealthy is the proposal for an annual wealth tax: 1% for wealth over £10m and 2% for wealth over £1bn – a measure which the Greens calculate will raise £14.8bn a year.
In an era of squeezed public services and increasingly high taxes on work, the appeal is clear and the answer ostensibly simple: tax wealth, not work, and target assets, not income. The revenues raised could then be spent on the UK’s crumbling public services.
