Britain needs a wealth tax on property

Abstract:

Proposals such as a 2 per cent tax on wealth over £10mn have made headlines. However, many expensive assets — such as paintings and yachts — are mobile, unlike fixed property and land. Instead, the government should replace the top two bands of council tax, covering around 1.1mn properties in England and Wales, with an annual wealth tax of 0.5 per cent as well as a 1 per cent tax on all agricultural and unoccupied land valued above £40,000 per hectare. For non-UK taxpayers and owners of second homes, the rate would be 1 per cent, lower than typical US property tax rates. Crucially, the great majority of homeowners and farmers would be untouched by these reforms.