May 20th, 2020 / Insight posted in Tax, MKS News

FT live Q&A: Tim Stovold on wealth tax implications post-crisis

FT Money calls on Tim Stovold to answer readers’ questions on the Coronavirus bailout by the government. Responding to a question on defined benefit pension schemes, Stovold said: “If a wealth tax were implemented based on the capital values of assets, it wouldn’t really work with DB schemes so a possible alternative would be to collect a greater amount of income tax when the pension is eventually taken.”  Regarding a question about tax liability of a residence whose value has shot up since purchase, Stovold discussed the notion of a yearly accrual payable on death with inheritance tax. Stovold goes on to compare the UK with the French system of taxing wealthy individuals.

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