Resolution Foundation is urging UK authorities to restrict relief on capital gains tax and inheritance tax
Nearly a quarter of household wealth in the UK belongs to the richest one percent of the country’s population, according to the latest research by Resolution Foundation, which has sounded the alarm over growing inequality.
The tiny minority currently holds almost £800 billion more wealth than suggested by the country’s official statistics, the study reveals, suggesting that this could be a conservative estimate and the actual figure could be even higher.
The report represents a considerable increase on the official data, which reportedly omitted the assets of very wealthy households. The London-based thinktank said the total share of UK wealth held by the top one percent of citizens amounts to more than 23 percent, compared to 18 percent recorded by the government.
The foundation is urging UK authorities to gear up on restricting relief on capital gains tax and inheritance tax. It is also pushing for an earlier introduction of a council tax supplement of one percent on properties worth over £2 million. The measure would reportedly bolster the country’s chances of tackling the Covid-19 fallout, along with the costs of an ageing population.
The UK has undergone a wealth boom in recent decades, which has continued even while earnings and incomes have stagnated. But official data has struggled to capture these gains, and misses £800 billion of assets held by the very wealthiest households in Britain, said Jack Leslie, an economist with the foundation, as quoted by UK tabloid the Daily Express.
With the country facing a decade of mounting fiscal pressures, now is the time for Britain to do a better job of taxing its record levels of wealth by reforming our capital gains, inheritance and property taxes, the expert added.