Reforms to IHT, CGT and NICs could raise over £20bn a year, and still pass a ‘triple tax test’ of improving tax efficiency and not break manifesto commitments, according to new research published by Resolution Foundation.
The Chancellor has inherited £24bn of tax rises already announced by her predecessor Jeremy Hunt and the £10bn of tax rises in the Labour manifesto are also likely to be confirmed. However, under current spending commitments, additional tax rises will be needed as the Chancellor faces a £22bn departmental overspend this year.
The Foundation proposes aligning CGT rates for shares with dividend tax rates, taxing property capital gains like wages, introducing CGT exit charges when moving country, and applying it at death. Dividend and rental income tax rates should also be reformed.
The report notes that while there are many ways in which the taxation of pensions is inconsistent and unfair, the Chancellor’s best option would be to levy employer NI on employers’ pension contributions at the same time as abolishing NI on employees’ pension contributions, raising £9bn overall.
The Chancellor should also close loopholes in IHT that allow the very wealthy to avoid paying their fair share, ending business and agricultural reliefs and bringing pension pots into IHT would raise another £2bn.
Reforms to IHT, CGT and NICs could raise over £20bn a year, and still pass a ‘triple tax test’ of improving tax efficiency and not break manifesto commitments, according to new research published by Resolution Foundation.
The Chancellor has inherited £24bn of tax rises already announced by her predecessor Jeremy Hunt and the £10bn of tax rises in the Labour manifesto are also likely to be confirmed. However, under current spending commitments, additional tax rises will be needed as the Chancellor faces a £22bn departmental overspend this year.
The Foundation proposes aligning CGT rates for shares with dividend tax rates, taxing property capital gains like wages, introducing CGT exit charges when moving country, and applying it at death. Dividend and rental income tax rates should also be reformed.
The report notes that while there are many ways in which the taxation of pensions is inconsistent and unfair, the Chancellor’s best option would be to levy employer NI on employers’ pension contributions at the same time as abolishing NI on employees’ pension contributions, raising £9bn overall.
The Chancellor should also close loopholes in IHT that allow the very wealthy to avoid paying their fair share, ending business and agricultural reliefs and bringing pension pots into IHT would raise another £2bn.
