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<p>The Government has noted the open letter and the suggestion of an annual wealth
tax.</p><p> </p><p>The Government is committed to a fair tax system in which those
with the most contribute the most. For example, the UK’s progressive Income Tax system
means the top 1 per cent of Income Taxpayers are projected to pay 28 per cent of all
Income Tax, and the top 5 per cent are projected to pay 49 per cent in the year 2021-22.</p><p>The
UK does not have a single wealth tax, but it does have several taxes on assets and
wealth. The UK already taxes assets and wealth across many different economic activities,
including the acquisition, holding, transfer and disposal of assets, and income derived
from assets.</p><p> </p><p>Notably, in 2020 the Wealth Tax Commission, which has no
connection or link to the Government, found 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.</p><p> </p><p>The Wealth
Tax Commission also concluded that an annual wealth tax, reportedly suggested by the
UK branch of the group behind the letter, would not be effective because of high administrative
costs relative to revenue and ease of avoidance. It is also clear that the Wealth
Tax Commission’s suggestion of a potential one-off wealth tax in the UK would be a
complex undertaking and the amount of revenue raised would be highly dependent on
the final design of the tax.</p><p>It is also the case that any individual or private
business wishing to make a greater contribution to the Exchequer can make voluntary
payments to HM Government. More information about how to do so is available on GOV.UK.</p>
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