Tax

Better Taxes: Our Five Proposals

1. A 2% Wealth Tax On Net Wealth Over £10 million

The UK has the sixth-largest economy in the world. But this wealth is a largely untapped resource, held by a small proportion of the population. Equality Trust research shows that billionaire wealth has grown by 842% since 1990, and the 50 richest families in the UK currently own more wealth than the poorest 34 million people.

We propose:

A 2% wealth tax on assets of those with net wealth over £10 million, which would raise £24 billion a year and apply to some 22,000 people, just 0.03% of the population.

2. Reform Capital Gains Tax

Capital Gains Tax (CGT) – the tax on profits made on the sale of an asset – is one of the UK’s most dysfunctional and economically inefficient taxes, characterised by unfair loopholes and rates. While Rachel Reeves made small tweaks in the October 2024 budget, raising the main and higher rates to 18% and 24%, respectively, it still remains the lowest in the G7. This is something Britain’s communities struggling with the cost of daily living cannot afford.

We propose:

Tax wealth equally to how we tax work: equalise the CGT rates with income tax.
Introducing an investment allowance
Closing unfair loopholes: Removing the death uplift and bringing in a ‘settling up’ charge so people looking to move abroad pay their fair share on their way out.

3. Apply National Insurance to Investment Income and Partnerships

These measures would raise around £6.1 billion a year - £4.2 billion (from investment income) and £1.9 billion (from partnerships income).

We propose:

Expanding the NICs tax base to income from investments and partnerships. This would remove economic distortions, ensure income from wealth is taxed at the same rate as earnings from work, and be better for growth.

4. Proportional Property Tax

One example of this has been proposed by Fairer Share, which would replace both council tax and stamp duty by introducing an annual single flat rate of 0.48% of a property’s value, with an additional surcharge of 0.96% on empty, second and non-resident-owned homes. It would result in a tax cut for 19 million people (77% of homes).

We propose:

Introducing a Proportional Property Tax based on periodically reviewed revaluations to replace the unfair council tax system that sees a mansion in London pay the same rate of tax as a house in the North East.

5. Stop Tax Abuse By Rich Multinational Corporations

The vast majority of multinational companies refuse to disclose how much corporation tax they pay here in the UK or any other country. This lack of transparency means the government has no way of knowing if they are paying their fair share of taxes. This makes it easier for companies (like Amazon) to shift their profits to tax havens.

It is crucial that the government mandates multinational businesses operating in the UK to publish a breakdown of exactly how much income, profit and tax they generate here and in all other countries – known as ‘public country-by-country reporting’ (pCbCR). The UK government agreed this was merited in 2016, but has yet to implement this power. Increasing numbers of nations are mandating pCbCR – from the EU to Australia – where there is evidence of reduced use of tax havens and profit shifting, and increased effective tax rates and domestic tax revenue mobilisation. The UK must follow suit – not just to raise significant revenue, but to restore its credibility as a global leader in tackling tax abuse.

According to the Tax Justice Network, implementing PCbCR would prevent 1 in every 4 pounds currently lost to corporate tax havens each year, and bring in around £5 billion per year.

We propose:

Mandating that multinational corporations declare profits wherever they operate, to bring in around £5 billion and much more in future.