A radical secret plan being drawn up by Labour could unleash a Great British Wealth Tax, targeting the pensions, properties, and life savings of millions, an explosive new report can reveal.
The IFS Blueprint: A Tax on Everything You Own
The Institute for Fiscal Studies (IFS), a highly influential think tank with deep ties to the Labour leadership, has published a controversial blueprint advocating for a sweeping overhaul of the UK's tax system. The core proposal? A comprehensive annual wealth tax that would fundamentally change how Britons are taxed, moving from income to assets.
The report, seen as a testing of the waters for a future Labour government, suggests taxes should be levied on the market value of everything an individual owns. This means:
- Pension Pots: Your hard-saved retirement funds could be assessed and taxed annually, eroding their value year-on-year.
- Family Homes: The equity in your property, beyond a certain threshold, would be considered a taxable asset.
- Savings & Investments: ISAs, shares, and other investments would no longer be safe from the taxman's grasp.
- Inheritances: The report also takes aim at inherited wealth, proposing a drastic simplification of inheritance tax into a far more aggressive "accessions tax" that would hit beneficiaries harder and more frequently.
A Stealthy & Complex Assault on Middle Britain
Critics are already sounding the alarm, labelling the proposed regime a "stealth tax" of nightmarish complexity. The administrative burden would be colossal, requiring a continuous valuation of assets for every household in the country.
Paul Johnson, Director of the IFS, admitted the changes would be "a hell of an undertaking" but necessary to address the UK's creaking public finances and an ageing population. The report argues that current taxes on income and spending are insufficient and that wealth presents an "untapped" revenue source.
Political Earthquake: Is This Labour's True Agenda?
While the Labour party has officially stated it has "no plans for a wealth tax", the IFS's proximity to Shadow Chancellor Rachel Reeves raises serious questions. The think tank's work is widely regarded as a key driver of Labour's economic policy thinking.
This revelation is set to ignite a fierce political battle. It will fuel Conservative claims that a Labour government would unleash a tax raid on aspiration, punishing those who have saved and invested for their future and their families. The debate over how to fund public services in the coming decades has just been blown wide open, putting the nation's wealth squarely in the crosshairs.
