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News release: UK should have a Capital Gains ‘exit tax’

The UK should have an ‘exit tax’ like Australia and Canada, argues a new report from the Centre for the Analysis of Taxation (CenTax).

The UK is an international outlier in not charging Capital Gains Tax (CGT) on people who leave the country. The authors calculate that this is costing the UK at least £500 million per year in foregone CGT, although the true figure is likely to be much higher.

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News Release: Money for nothing? An assessment of tax reliefs and wealth inequality

Dr Arun Advani is one of 21 tax experts and political influencers writing for a new collection of essays, A wealth of opportunities published by independent think tank Bright Blue and independent charitable trust abrdn Financial Fairness Trust.

The publication brings together a range of experts and political leaders to offer a fresh and radical centre-right vision to help people on modest incomes build up and pass on wealth.

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News Release: More capital gains are received in one neighbourhood in Kensington than in Liverpool, Manchester and Newcastle combined, finds new report

Total capital gains have almost tripled over the last decade, to £65bn by 2019/20. Despite this, most people never receive any capital gains, with less than 3% of adults paying capital gains tax over a ten-year period. In any given year just 0.5% of adults receive any gains, less than the number of additional rate (“45p”) income tax payers.

These findings come from new research which gained unprecedented access to the anonymised tax records of capital gains tax payers. The study, by researchers from the University of Warwick and The London School of Economics and Political Science (LSE), analysed the anonymised personal tax returns of everyone who received taxable capital gains between 1997 and 2020.

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The Centre for the Analysis of Taxation (CenTax) is dedicated to improving public understanding of tax policy and helping to design better a better tax system, by generating evidence that is rigorous and relevant to policymakers and the public. CenTax is led by Dr Arun Advani (Warwick) and Dr Andy Summers (LSE). CenTax is supported by core funding from the abrdn Financial Fairness Trust and Thirty Percy Foundation