Dr Ben Tippet, lecturer in economics and wealth inequality at King's College London, has urged Prime Minister Andy Burnham to implement a 2% annual tax on net assets exceeding £100 million. The levy could generate approximately £10 billion per year, he said, and must include all assets with no exemptions to prevent tax avoidance.
Preventing an Exodus
To stop wealthy individuals from fleeing the country, Dr Tippet proposed a 10-year "tail period" during which millionaires who move abroad would still be liable for the tax. This mirrors the existing inheritance tax system, where taxpayers remain exposed for 10 of the previous 20 tax years if they have lived in the UK.
"What Andy Burnham needs to tackle is the problem of billionaires paying a lower effective tax rate than the rest of us, which happens because the system is designed to tax income instead of unrealised capital gains," Dr Tippet told the Express.
Growing Wealth Inequality
Dr Tippet highlighted the surge in super-wealth since the 1980s. "In the 1980s, the Queen was the richest person on the list, and their cumulative wealth was about 5% of GDP. Today, it's more than tripled to over 16% of GDP," he said. He argued that a wealth tax would address this concentration and could cover a third of the current budget deficit, equivalent to seven times the cuts made to the winter fuel allowance by the previous government.
"It's only fair that if you make your money in the UK, you should be liable for tax for a period of time, even if you give up your residency status," Dr Tippet added.
Support and Alternatives
Millionaires including Gary Lineker have called on Mr Burnham, who took office last week, to introduce higher taxes on wealth, with proceeds used to reduce inequality, support public infrastructure, and back small businesses. Other experts have proposed property tax reform, such as a land tax. Dr Miriam Mara, associate professor of finance at Henley Business School, said: "Land and real estate are visible, difficult to hide offshore and already recorded in public systems. Property taxes must be designed more carefully to avoid harming cash-poor households."
