Director @CenTaxUK and Associate Prof @LSELaw. Trying to make tax understandable and help design a better tax system. Fellow @LSEInequalities and @TheIFS
London, UK
- Tweets 1,166
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- Followers 3,257
- Likes 1,313
If the farmer who phoned in to #bbclaurak is facing an Inheritance Tax bill of £1m under new rules, she must have a farm worth about £8million. According to HMRC's stats, this would make it one of the 20 most valuable farms facing IHT each year. Might've been useful context for the show!
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Welcome to the topsy-turvy world of farm lobbying... 🙃
"Small farms will be broken up and they'll all be bought by big landowners, this is the end of farming as we know it."
Reality:
🤫big landowners* currently buying up farmland because they get unlimited IHT relief
😩 pushing up prices for everyone else including small tenant farmers who want to buy
🧐 actual small farms unaffected by this reform because £3m farm still pays no IHT in practice
Capping IHT relief is part of the solution for small farms, not the problem!
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Sigh, I still have a lot of Budget docs to read and cannot spend my whole evening doing this but go on I'll do one more...
£1m relief is on top of £1m couple allowance, so really £2m+ farms only. Only around 200 estates per year affected (av estate value £6m), just isn't armageddon for small family farms.
Imposing inheritance tax of 20% on farms worth over a million. Which is the case for many farms these days, this is money those families never want to realise.
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Finally, big credit to @RachelReevesMP for going on #bbclaurak the Sunday *after* the Budget so she can take proper questions, unlike previous Chancellors who've gone on the week before when they can't actually say anything, which was a total waste of everyone's time. Hope she will stick to this!
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For anyone who wants workings for the £8m / top20 stat: to get £1m IHT you need farmland worth £5m @20%. That's on top of £3m (effectively) tax free for a couple. HMRC stats show only 37 estates with claim for Agricultural Relief >£5m, with half of those below £6.4m. So £8m is comfortably top 20.
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Fact alert: Only 200 estates per year claim more than £1 million in Agricultural Relief, and they had an average estate value of £6 million. The other c.1000 estates per year that claim AR wouldn't be affected by the cap.
All the facts on IHT you could possibly want in this recent @CenTaxUK report centax.org.uk/wp-content/upl…
Pasty tax alert... If I had to pick one tax change today that will unravel it's the £1m limit to agricultural property relief in IHT. Most small family farms are worth more than that, not that the farmers want to sell them, but they will now be unable to pass the farm on.
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NEW paper with @arunadvaniecon
We use tax data on all UK residents with income/gains >£100k pa to study:
How much tax do the rich really pay?
A: On average, much less than you’d think. But BIG variation: some pay a lot; others very little. Why...?
warwick.ac.uk/fac/soc/econom…
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Another point that seems to have gone unnoticed: in her interview, Chancellor said the £1m relief will be "transferrable" between couples. That was already the effect in practice (see my earlier post), but is Government now making this part of the official policy?
nitter.app/Summers_AD/status/1851…
Start with a £3million farm, owned by a couple. They pay no IHT at all. Very simple planning:
First death, give £1.5m to kids, rest to spouse. No IHT because £1m Agricultural Relief plus £500k allowance (nil rate band plus residential nil rate band on farmhouse). Second death, give £1.5m to kids. Same deal. No IHT at all.
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Even farms worth £5,000,000 will in practice only pay Inheritance Tax of less than 1% per year (for 10yrs). How can that be?
Some worked examples...
Sigh, I still have a lot of Budget docs to read and cannot spend my whole evening doing this but go on I'll do one more...
£1m relief is on top of £1m couple allowance, so really £2m+ farms only. Only around 200 estates per year affected (av estate value £6m), just isn't armageddon for small family farms.
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When a gov is looking for big money, we’re always told it can only come from Income Tax, NICs, VAT
You can tax wealthy if you want, but won’t save you from the ‘hard choices'😢
That’s not right.
Here’s what we concluded on the Wealth Tax Commission…
ft.com/content/36c35939-c06e…
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Oh fun game let me try one:
Ever wondered why Sir James Dyson is the largest owner of farmland in the UK?
That is because of the 1995 introduction of 100% Inheritance Tax relief on tenanted agricultural property. Previously it only applied to owner-occupied farms. #taxfacts
Ever wondered why some old buildings have bricked up windows?
That is because of the 1696 window tax which charged between 2 and 14 shillings dependant upon how many windows you had. It was finally done away with in 1851. #TaxFacts
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"My cutting-edge method is as follows. First, I identify periods when two things happened around the same time. Then, I assume that one caused the other and that this relationship holds under all economic circumstances. The end."
thetimes.co.uk/edition/news/…
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New research out today on top-end inequality in UK, with @arunadvaniecon and @adamcorlett.
We look at what happens when you take account of capital gains. Answer: inequality is worse than we thought, and has been rising.
A few of our key findings: 1/7
theguardian.com/money/2020/m…
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So the reality is (for couples):
⭐️Farms up to £3million - no tax under this reform
⭐️Farm valued at £5million - £40k per year for 10yrs (0.8% rate)
Above that the tax gets steeper, but that's the point. These huge estates were previously paying no IHT! Now they must pay 20% effective rate above £3m. Not sure what the fuss is about...
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As academics critique the world’s response to Coronavirus, we need to start a conversation about what’s been happening in our own back yard. How is our own Covid response impacting existing inequalities in our academic community? docs.google.com/document/d/1…
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Instead of a new levy on top, gov should've fixed gaps in existing NI system:
💷Remove NICs exemptions for investment income & pensioners
💷Equalise rates on earnings >£50k with those below
We modelled how much these reforms would raise & who'd pay...
warwick.ac.uk/fac/soc/econom…
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You only pay tax on the amount above the threshold not the full amount (same as for income tax). If passing to spouse then there's no tax and no limit. Hope this helps.
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The farmer who was featured referred to her parents (i.e. would have 2x reliefs), so I'm just giving context to the actual example used. I agree that #BBCLauraK could've chosen a better one!
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⭐️How much revenue would be raised from scrapping non-dom status?
⭐️ And if non-doms had to pay UK tax like everyone else, would they leave?
Check out this explainer of our new findings using HMRC tax data (w @arunadvaniecon & @D_Burgherr) 👇
Video credit: Jacob Liebenberg
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A few months ago we commissioned the first in-depth analysis of proposals for a UK wealth tax in nearly half a century…
TODAY we can release what we learned so far!
Read the papers on our website: ukwealth.tax
Summary follows...
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Anyone still remember this?
Until 2022 consensus was that abolishing non-dom status wouldn't raise any money, and might even cost revenue. Non-doms and their advisors still saying this as recently as last week...
OBR have just scored over *£30 billion* from non-doms over 5yr scorecard window
piped.video/watch?v=W5U3hv4N…
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🚨IMPORTANT POINT🚨 these findings are *not* driven by complex tax avoidance schemes, dodgy accountants etc. It’s all basic stuff, *baked in* to design of tax system…
So: if you don’t like it, blame politicians, not individual taxpayers!
What can be done? 7/
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"Hello, HMRC, I'd like to amend my tax return for 2018-19 please. Yes so when I said my trading profit was £50,001, what I meant was..."
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Why does abolishing the 45p rate from April 2023 cost -£2.3b *this* tax year, before it's even come into force? And then *raise* money next year? 🧐
Let me explain...
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[Please RT] We're hiring! Full-time RA based at @LSEInequalities working with @arunadvaniecon and me using UK tax data to study the super-rich.
12-15months starting this summer. Details below, deadline 14th Feb. Feel free to get in touch! jobs.lse.ac.uk/Vacancies/W/1…
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For more discussion of the issues and tonnes of facts about IHT using actual tax data, check out our @CenTaxUK report: centax.org.uk/wp-content/upl…
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Here's the distribution of capital gains by asset type. The right-most bar represents 1000 people who received an average of £14mil gains each in 2017. At risk of sounding like a broken record, this story is really not about pensioners who own second-homes...
My long read on the chancellor's £14bn Capital Gains Tax dilemma. Would raising it punish the wealth-creators - or force the richest to pay their fair share?
thetimes.co.uk/article/capit…
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Start with a £3million farm, owned by a couple. They pay no IHT at all. Very simple planning:
First death, give £1.5m to kids, rest to spouse. No IHT because £1m Agricultural Relief plus £500k allowance (nil rate band plus residential nil rate band on farmhouse). Second death, give £1.5m to kids. Same deal. No IHT at all.
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Main findings:
On average, rich pay much lower taxes than headline rates. This is true even just looking at income, but more extreme including capital gains.
Average person receiving >£5mil in income/gains paid just 27% tax; that’s same as someone on earnings of £50,000…
5/
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0.5% of UK adults pay CGT. And 0.01% (5000 people) receive nearly two thirds of all taxable gains. So really not a 'you and me' kind of tax...(even amongst listeners of #r4today)
Nick Robinson says Chancellor’s review of capital gains tax will target…..“you and me”
The “me” maybe - but not sure how many listeners are among the very rich who would be hit?
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This is quite strong language from someone who obviously doesn't understand that trusts also currently benefit from Agricultural Relief and Business Relief and this reform is capping it for them as well.
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Key takeaways from our paper:
⭐️Focus on effective rates, not headline rates!
⭐️Lots of variation in effective rates amongst rich, driven by design of tax system
⭐️Alternative Minimum Tax could raise revenue without increasing headline rates
10/ Ends [except for methods…]
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Two main factors:
(1) different sources taxed at different rates, so where you get your money from matters: dividends & capital gains taxed much less than earnings
(2) deductions and reliefs allow some people to get discounts off tax bill
2/
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What does this imply? That HMT advised ministers that pre-announcing the Additional Rate cut will cost government more than if they waited until next March/April to announce *exactly* the same policy. But ministers went ahead anyway...
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Voters don't understand the tax system. And governments cynically take advantage of this. That's the only way to explain it, I'm afraid.
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AMT set at 35% for individuals with >£100k income/gains, could yield £11 billion pa (static estimate).
That’s equivalent to adding 5p to both 'higher' (40%) AND 'additional' (45%) rates of Income Tax.
…but would increase tax only on those currently paying lowest %.
9/
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Am just so sad about the passing of John Hills. He was an inspiring mentor to me (and so many others), a wonderful human being, and a role model to all aspiring to do rigorous policy-relevant academic research. His legacy will live on.
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[Please RT] We're hiring again! Full-time RA based at
@LSEInequalities working with @arunadvaniecon
and me using UK tax data to study the super-rich.
12+months starting ASAP (or from Sept). *Application deadline 5th June.* Feel free to get in touch! jobs.lse.ac.uk/Vacancies/W/1…
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Now think about the £5million farm (owned by couple). Same deal as my first example, except they pay 20% IHT on the amount above £3m = £2m*0.2 = £400k.
Ouch that sounds like a lot of money, will they have to break up the farm? No, because they can spread over 10yrs: gov.uk/paying-inheritance-ta…
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Amongst all Indians living in UK, around 6% have ever claimed nondom status (fig10). Amongst migrants with reported income >£5m, this figure is over 83% (Fig4b)...
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We model a new ‘Alternative Minimum Tax’: would set minimum tax rate (EATR) based on total income/gains.
Under an AMT, can keep different rates and some deductions/reliefs, but don’t allow people to stack these up in unlimited way.
Seems fair. How much could it raise?
8/
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But there’s BIG variation! Amongst rich, some paying close to top headline rates, while others at same level paying very low rates…
Out of people receiving £1 million:
➡️1-in-4 paid 45% tax
↘️1-in-4 paid less than 30% tax
⬇️1-in-10 paid 11%: same as someone earning £15,000
6/
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Very nice review of our new project on a UK wealth tax by @MESandbu in today's @FT Free Lunch.
ft.com/content/6166f5d2-a64b…
Also check out his earlier write-ups when he took a trip to Switzerland to investigate their wealth tax - lots of interesting reflections in there.
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The stat above is also for value of relief, not for tax saved. Also important to remember that £1m relief is on top of (typically) £1m allowance for couples. So effectively only estates >£2m affected.
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We also looked at who would pay under our reform vs government's plan:
The government's levy falls more on younger, lower-paid. Our reform is paid mostly by older and higher earners, and those who get income from wealth.
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Oh and there's a 'levelling up' angle as well (isn't there always...):
Under our reform, more of the new revenue would come from London and the South East, instead of the North.
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New project launching today!
With @arunadvaniecon and Emma Chamberlain.
Should the UK have a wealth tax?
❓❓❓What’s your view? Let us know what you think. Here’s why we’re asking…
Hey #taxtwitter + #econtwitter
🚨Today is the launch the ukwealth.tax project. 🚨
What are your views on whether UK should have a wealth tax?
[replies with more details, esp if option 4, very welcome]
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Nearly all of Entrepreneurs Relief went to (5000) people who gained over £1mil each. Imagine your retirement plans being 'destroyed' by cashing in a lump sum of only £800k instead of £900k 😭🎻
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Yesterday I told my brother our report was going to be in the FT.
He said who cares, that's 'wonk world', you need to be hitting the talkshow scene.
Here it is! Thanks @garyseconomics.
#wealthTax
Me on @talkRADIO giving it to the government.
Someone has to pay for this crisis, and it shouldn't just be the hard-working people of this country. The super rich must pay their way too.
@Summers_AD @gabriel_zucman @TaxJusticeUK
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Capital gains are *very* concentrated. Ranking people by their taxable gains (2017-18), the top 5,000 people received over half (54%) of all gains. For comparison, top 5,000 ranked by income received 2% of all income. The top 1,000 all got over £7mil each... 2/
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There's another twist to this story: those who left probably weren't leaving bc of wealth tax increase anyway ... more likely trying to forestall Norway's new (more effective) exit tax for CGT that was announced the same year. As we wrote at the time...taxjournal.com/articles/weal…
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In the competition for stupidest tax plan, Jeremy Hunt very wisely pitches his entry in the 'encouraging entrepreneurship' category, a field with a rich history of stupid tax plans.
I’m not a tax lawyer, but it strikes me that @Jeremy_Hunt plan to cancel student debts for ‘entrepreneurs’ who employ 10 other people for 5 years might be ...um...leaky.
Wouldn’t everyone just set up companies to employ their mates?
Asking #TaxTwitter
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(3) Equalising NICs rate on earnings above £50k (currently 2%) with rate below (currently 12% or 9%) gets up to £20bil [likely less due to behavioural response]
That'd be about enough to fund a *CUT* in main rates of NICs of ... yup ... 1.25p!
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Just been updating my reading list for LL4CO Taxation of Wealth @LSELaw. When I started teaching this course three years ago, most readings were from 1970s. Now most are from 2019...
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Enjoyed trip to Scotland at the weekend for Edinburgh half marathon with @kateesummers and family (everyone finished!). Rainy but fast course. 1:17:33 some way off my best but just happy to get home with no ankle pain after 4 months of injury☔️🏃♂️😀 @vphthac
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Nice thread from my co-author @arunadvaniecon summarising our new paper on the UK's global elite aka non-doms.
The (multi-)million/billion £ question is: how much is this all costing the Treasury, at a time when everyone else's taxes are going up?
This paper is now out. Planned before @Annaisaac made #nondoms cool again, we use confidential, anonymised HMRC data to look at🧐
🔸who the nondoms are
🔸what they do (incl a look at bankers)
🔸where they are from
🔸where they live
🧵 1/N
warwick.ac.uk/fac/soc/econom…
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(1) Charging NICs on all investment income (at same effective rate as earnings from employment) gets nearly £9bil
(2) Charging full NICs (not just levy) on pensioners - but not pension income - gets about £3bil
Together that's same as revenue from government's new levy...
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Imagine you're a banker looking forward to a nice big uncapped bonus...
Or a business owner deciding when to pay yourself a dividend...
Do you want to take it now, when you'll pay 45% tax, or on 6 April 2023, when you'll pay 40%?
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Is this the same Prof David Collins who in 2014 published an article in OJLS entitled: "The Chaos Machine: The WTO in a Social Entropy Model of the World Trading System"...? Has it got lots better since then?
academic.oup.com/ojls/articl…
A no-deal Brexit is nothing to fear, says Prof David Collins. A tried-and-tested alternative to an EU trade deal - the world trade system - is ready and waiting: spectator.co.uk/2018/08/whos…
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It's Budget day tomorrow. Yesterday I started counting down my top two favourite uses of Entrepreneurs Relief that are surely for the chop. Yesterday was furnished holiday lettings. Today is: retained earnings that aren’t even retained! Bear with me here...
It’s two days til Budget day! And I know COVID-19 has stolen the show, but for me it's still about ER. So I’m counting down my top two favourite uses of Entrepreneurs Relief that are surely for the chop (but let’s wait and see)…
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We study *effective* average tax rates (EATRs): total tax paid as percentage of total (taxable) money received…
Then compare with *headline* rates that would be paid on earnings of same amount, with no deductions/reliefs (except pensions/gift aid relief at basic rate).
3/
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Only £10b from NICs rise, net. The upshot is that gov could have reformed CGT properly instead and raised more money - no NICs rise needed.
There was £14bn up for grabs here, from package of CGT reforms that @TheIFS and we @CenTaxUK proposed. More progressive and better for economy too. Was a choice not take this route.
centax.org.uk/reform-capital…
How £26bn becomes £16bn. The net effect of employer NI increase is much less than appears because it results in lower pay and hence lower income tax and employee NI.
In fact knock off another £6bn for compensating public sector employers and the net effect falls to just £10bn.
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Bit gutted to miss last @metleaguexc race of the season with injury but I went along to cheer on the slopes of Ally Pally anyway. Was so pleased I did! Amazing running from @vphthac's men and women 🏃♀️🥈🏃♂️🥈series overall.
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I don't think all our public finance woes can be solved just by clamping down on uncosted reliefs. But we should be asking why no attempt was made to cost non-dom reform before a bunch of external researchers did it, and how many other policies we're still letting through on the nod instead of based on proper evaluation...
warwick.ac.uk/fac/soc/econom…
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Since someone also asked about cash flow: there's already rules allowing payment spread over 10yrs, so in my example you'd have to find £40k per year. On a £5m farm. So less than 1% pa. gov.uk/paying-inheritance-ta…
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Another day, another kite. But this time, a good'un! Replace Stamp Duty and Council Tax with proportional property tax. Full steam ahead 🚂🚂🚂👍
thetimes.co.uk/article/rishi…
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If IDS can muster this sort of outrage on behalf of IT Consultants who assumed it would be fine to route their salaries through the Channel Islands, just wait til he hears about what's been happening to single mothers with spare bedrooms...
I've written to the new Prime Minister @BorisJohnson Chancellor of the Exchequer @sajidjavid asking they take urgent action to rethink the highly unfair & harmful #LoanCharge @LCAG_2019 @loanchargeAPPG affecting 50,000 people in UK & approx 140 people in #chingford #woodfordgreen
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So far, I’m disappointed. LSE is implementing a ‘hiring freeze’ on academic staff that includes ‘not renewing’ fixed-term contracts. We should be clear about what this means for our early career colleagues: in any other industry these would be called *redundancies*. 2/
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Good question and yes if all used on 2nd death. But solution is to leave £1.5 to kids on 1st death, to use up RNRB and £1m relief optimally. Expect this will become standard planning, even if relief not formally transferable (and RNRB tapered).
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Richard is effectively modelling here a capital gains tax that works on an accruals (instead of realisation) basis, which is not totally crazy, in fact what a lot of economists advocate. BUT:
theguardian.com/politics/202…
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6/ Would raise big money from those who can afford it & be economically efficent. So what’s the catch?
Hasn’t been done, wishful thinking, won’t work...
We think it would, and wrote 50,000 words about why. Our final report is launched today. Have a read!ukwealth.tax/
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Take a look at the whole report and see what you think. There's an appendix too, with all the data/method details - can send on request (not online yet).
Credit to co-authors @arunadvaniecon, @econ_hannah & Helen Hughson.
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After 4days straight the market for political hot-takes seems pretty saturated so maybe now's the time for an enterprising journalist to switch the convo to whether this whole non-dom regime is actually a good idea?? 🙏
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Brave and sensible for Rishi to seed this now, even just as 'in principle' observation. No doubt this package has some holes (more on that later) but was a tough ask. Also in questions, seemed very on top of his brief. Actually inspires confidence.
Think @RishiSunak just said that as a price for bailing out self employed today, he will end tax and national insurance advantages of self employment once the crisis is over #COVID19
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Well well well...
"No evidence that scrapping non-dom status would cost UK £350m, Treasury admits"
opendemocracy.net/en/non-dom…
If it exists, Treasury should publish their analysis in full so we can all see their methodology rather than leaking titbits to press. Happy to stand by our data/methods. Imagine if we'd said here's our number but we won't tell you how we got it!
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📢Quick note to editors re all the think-pieces on Investment Summit and upcoming Budget...
👏 UK Capital Gains Tax doesn't apply to foreign investors! 👏 (except on UK real estate)
UK institutional investors don't pay CGT rates either. UK private investors can use EIS, SEIS, VCTs, also CGT exempt.
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Very proud of my brother Pete, who's now one of the top 10 fastest British ironman athletes of all time...and the only one with a full-time job! (@Ogilvy). @vphthac @RedTopSwim
PD PB 😁. 8hrs13mins for an Ironman, 5th at ETU Long Distance Triathlon Champs in Amsterdam, repped GB in the Elite race, won some actual prize money. Dug deep. More updates and thanks soon. @ChallengeAlmere @vphthac @RedTopSwim @EastLondonVelo @gllsf #backtoworkonMonday
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5% one-off wealth tax (paid 1% pa for 5yrs) on net wealth above £1mil per household (couple with £500k each) would raise £260 billion 💰
If you ‘only’ want to raise £80 billion, you can make that £4mil per household...
2p on basic rate of Income Tax gets you £10bil per year.
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Interesting new report out today by @TheIFS on inheritances in the UK. Striking finding that 1in10 people born in 1980s have parents with 'wealth per heir' >£530k. Taxes on wealth will become more important. ifs.org.uk/publications/1494…
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New article in @JSP_Journal with @arunadvaniecon and @TahneeOoms.
We study what's missing from the UK's official income statistics and why this matters for tax policy.
Short(ish) 🧵
New on #FirstView by @arunadvaniecon, @tahneeooms & @summers_ad:
The UK’s official income statistics underestimate incomes from wealth, distorting the picture of economic inequality and diverting attention from tax policies that benefit the richest.
cambridge.org/core/journals/…
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Back to running racing for first time in a long while at #London10000. Felt good to set a benchmark (a low bar...) and pull on the @vphthac vest again!
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Your regular reminder that the gov spends more than this each year giving Entrepreneurs Relief to 5000 people who sold their company at a profit of >£1mil.
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Wrong. We looked at the tax data.
Less than one quarter of those receiving >£100k actually paid the headline (average) rate on earnings.
Meanwhile 1 in 10 getting >£1mil paid less than those earning £15k. That's because of low CGT.
Can read more here:
warwick.ac.uk/fac/soc/econom…
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25 years yesterday since Rovers won the Premier League! Not counting on seeing another in my lifetime. Dad still has the moustache.
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More results and discussion of the implications at the @resfoundation webinar, 11am today!
piped.video/watch?v=GujKPL4H…
Policy briefing: warwick.ac.uk/fac/soc/econom…
Resolution Foundation report: resolutionfoundation.org/app…
Full working paper: warwick.ac.uk/fac/soc/econom…
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Controversial opinion that's out-of-step with my sensible twitter following and, it seems, with public opinion...
Chancellor hasn't done a good job during CV19. He made one good - but inevitable - call early on, & since then has made a series of foreseeably bad policy decisions:
Rishi Sunak the star of the group: “I like him”; “He’s doing a good job”; “Pulling money from fresh air”; “I think he’s doing the right thing by being generous from the start”
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HMRC Survey of Personal Incomes, it's a large sample of taxpayer records (oversampled at the very top), publicly available via UKDS
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Don't worry @FraserNelson, we'll have more on this on 15th June. Please do join us then!
lse.ac.uk/Events/2020/06/202…
Top 1% of British earners also contribute 30% of the nation’s income tax - a stat mysteriously not included in this report.
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I swam Ullswater end-to-end today! 7miles in a bit over 3hrs. It's a swim I've been thinking about for a while and glad I did it. Great journey through one of England's most spectacular landscapes! 🏊♂️🏞😁
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Seems Labour is up for open-minded engagement about a wealth tax, neither firmly for or against at this point. That's obviously the right place to be pending proper review of evidence. Happy to engage with all parties in this spirit!
This is false. Labour is clear that the cost of the crisis should be borne by those with the broadest shoulders. We are following very closely the academic research under way by @LSEInequalities/@cage_warwick and others on how a UK wealth tax would work.
thetimes.co.uk/article/labou…
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Good to see Labour and FT making use of our analysis of HMRC tax data @arunadvaniecon warwick.ac.uk/fac/soc/econom…
New: 🚨 🚨
- a Labour government would crack down on private equity industry by ending the £440m annual “carried interest loophole” that allows executives to pay reduced rate of tax on their bonuses
- announcement tomorrow from @RachelReevesMP
on.ft.com/3AoMJqF
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At the #IFGTax @ifgevents listening to Shreya Nanda from @IPPR make a strong pitch for equalizing rates of tax on capital gains and income. Interesting observation from @rbrharrison that this might be starting to gain traction on both left & right...
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In many cases, gains are effectively just repackaged income. The legal line between them is blurred. But gains are taxed at much lower rates, so there's a strong incentive to swap income for gains, for anyone who can. Again, this is mostly business managers. 4/7
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I find it depressing that a profession that exists to turn a critical lens on the world, so often fails to turn that lens on ourselves. What good is lecturing governments, while we implement the very policies we are criticising, amongst ourselves? 8/
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Ending non-dom status would raise at least £100s millions in extra revenue. I agree, based on as much as we can know from published stats.
Coming soon, new estimates using individual taxpayer records (working on it now, with @arunadvaniecon & @D_Burgherr)...🔎
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