This week: 5 June 2025

Practicalities of operating a wealth tax

Are you wealthy? The idea of a wealth tax seems to be on the political agenda again. Taxing the wealthy undoubtedly has a popular appeal – provided of course that it is only people wealthier than you who have to pay.

I leave it to others to discuss the politics and economics – I’m interested in how such a tax would work in practice. For a start what would be in scope? The family home? Undrawn pensions? Farmland? Shares in private companies? Interests in a trust? Then how would you value those assets? Anybody who has advised on a business break up or a divorce will know that two reputable valuers can come up with wildly different figures for the same assets.

Then what of the issue of asset rich/cash poor individuals? Would a wealth tax have to be linked to an...