Thank you for contacting me about reform of our taxation system.
I am a supporter of lower taxes for working families, so that people have more money in their pockets.
Changes to our tax system will be decided by the new Government, and I hope that they will remain committed to their manifesto promise of not raising taxes for working people.
The UK does not have a comprehensive, single wealth tax, but it does have several taxes on assets and wealth. Notably, the Wealth Tax Commission, which has no connection or link to the Government, found in 2020 that, if considering Inheritance Tax, Capital Gains Tax, Stamp Duty, and Stamp Duty Land Tax, the UK is among the top of the G7 countries for wealth taxes as a percentage of total wealth.
The UK system is designed to ensure, among other things, that the richest in our society pay their fair share on their wealth and assets, with the tax system taxing wealth across many different economic activities, including acquisition, holding, transfer and disposal of assets and income derived from assets. These tax levers generate substantial revenue; according to the Office for Budget Responsibility, over 2024/25, the Exchequer will accrue Inheritance Tax revenues of £7.5 billion, Capital Gains Tax revenues of £15.2 billion, and property transaction taxes of £14 billion.
The UK does get a lot of its tax revenue from the highest earners - the top 10% pay over 60% of the total income tax in the UK, and the top 1% pays 29% of this.
Any changes to taxation will be announced in future budgets. I will closely monitor changes to the tax regime, to ensure fairness is placed first.
Thank you again for taking the time to contact me.
Kieran