Valuation for the purposes of a wealth tax

Stephen Daly, Helen Hughson and Glen Loutzenhiser

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper considers the scale and prevalence of valuation issues under a wealth tax. Valuation issues are frequently cited in the literature as the most difficult aspect of wealth taxes. We examine some of the most problematic asset types from a valuation perspective. We also consider a range of solutions to manage these concerns, drawing on international experience and the approaches already taken for other taxes within the UK system. We conclude that satisfactory options for arriving at a value for wealth tax purposes are available even for the most problematic assets. We also estimate that the absolute number of taxpayers likely to pay substantial valuation fees is small, and that, in aggregate, valuation costs could be contained to around 0.1 per cent or less of total chargeable assets, even if they are substantial for some individual taxpayers.

Keywords: agricultural property; artwork; banding; business assets; net wealth tax; open market value; pension assets; residential property; tax policy; valuation; ES/L011719/1; ES/V012657/1; International Inequalities Institute AFSEE COVID‐19 fund (search for similar items in EconPapers)
JEL-codes: E6 J1 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2021-10-25
New Economics Papers: this item is included in nep-acc, nep-mac, nep-pbe and nep-pub
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Citations: View citations in EconPapers (9)

Published in Fiscal Studies, 25, October, 2021, 42(3-4), pp. 615 - 650. ISSN: 0143-5671

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http://eprints.lse.ac.uk/112696/ Open access version. (application/pdf)

Related works:
Journal Article: Valuation for the purposes of a wealth tax (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:112696

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