Andy Summers

Director @CenTaxUK and Associate Prof @LSELaw. Trying to make tax understandable and help design a better tax system. Fellow @LSEInequalities and @TheIFS

[Andy Summers @Summers_AD]

@dc_lawrence Very happy to discuss further offline!

[Andy Summers @Summers_AD]

@dc_lawrence Hi @dc_lawrence are there bits in this report you disagree with? https://t.co/JU2jMJywR5. We agree on (1) which is why we say loss reliefs should be extended. Not sure there is evidence on (2). For (3), reminder that CGT is based on residence not where your assets are located.

[Andy Summers @Summers_AD]

@WouterLeenders @LevyAntoine @arunadvaniecon Norway effectively pre-announced singificant tightening of exit tax, which incentivised immediate exits by those who anticipated leaving later. So may need to think of result wrt wealth tax in yr1 more like a stock elasticity.

[Centre for the Analysis of Taxation @CenTaxUK]

Several MPs raised questions on Tuesday with Exchequer Secretary to the Treasury @Dan4Barnet about potential adjustments to planned Inheritance Tax reforms, including a ‘Minimum Share Rule’, which we modelled in our recent report:

https://t.co/3J9FfyXP55

[Sam Dumitriu @Sam_Dumitriu]

Important paper.

Our tax system is such a mess that there's broad agreement from the @ASI to the @NEF on how to make it fairer, simpler, and more efficient.

If Reeves did this at the Budget, she'd go down as one of our greatest Chancellors.

https://t.co/o1P4eJyPFE

[Centre for the Analysis of Taxation @CenTaxUK]

🚨 NEW🚨

We’re really excited to launch ‘Tax Reforms for Growth’ today along with experts from across the political spectrum.

Consensus on tax policy is rare, but we have a joint plan for fair, pro-growth tax reform in the UK🧵

https://t.co/SDgfBeg2Jj

[Robert Colvile @rcolvile]

Everyone's talking about tax rises - but what about tax fixes? In a pretty unusual intervention, @CPSThinkTank has teamed up with @CenTaxUK, @ASI, @IPPR, @NEF, @jrf_uk, @WeAreBrightBlue, @LabourTogether & @DanNeidle to argue for sweeping, pro-growth tax reform & simplification.

[Centre for the Analysis of Taxation @CenTaxUK]

'Can we design a tax system which taxes wealth and capital fairly and is pro-growth?' with @CIOTNews

🕐 1pm, today (Monday)
📍Exchange 10, Manchester Central

👉 @johnbarnettcta
👉 @JohnGlenUK
👉 @Summers_AD
👉 Chair: Nichola Ross Martin

[CIOT @CIOTNews]

Join us Monday at 1pm for our CIOT/@CenTaxUK #CPC25 debate:
Can we design a tax system which taxes wealth and capital fairly and is pro-growth?
With @JohnGlenUK, @Summers_AD, @johnbarnettcta and Nichola Ross Martin
Exchange 10, Manchester Central (conf pass needed). Buffet lunch

[IPPR @IPPR]

💼 Join us now at #Lab25 | How can we fund public services?
09:00-10:15 | Education Area 3, Museum of Liverpool / https://t.co/qiPNC6QY3R
👉 @Dan4Barnet
👉 @YuanfenYang
👉 Heather Stewart
👉 @Summers_AD

[Andy Summers @Summers_AD]

We worked on a similar proposal with @TheIFS before the last Budget, published here: https://t.co/JU2jMJywR5

Last October, government nudged the rate up to 24% but left all the other problems untouched. CGT needs major reform, not just tinkering.

[Andy Summers @Summers_AD]

This was also broadly the conclusion of Wealth Tax Commission (https://t.co/w6H17mYPDr).

BUT last part is important: government should be doing serious reform of existing taxes on wealth. E.g. our proposal to raise >£10bil from CGT...(not just ⬆️ rates!) https://t.co/LUqQD44jDc

[Ed Conway @EdConwaySky]

IFS pooh-poohs wealth taxes:
- difficult to make the case that an annual tax on wealth would be a sensible part of the tax system even in principle.
- strong reasons to radically reform how we tax sources & uses of wealth, inc reforming capital income taxes

[Paul Johnson @PJTheEconomist]

Frankly outrageous from the govt. This new, and I think unprecedented, ban on civil servants speaking in public will damage public debate, politics, policy making and the civil service itself.

What are they thinking?

https://t.co/QzlAvKkezS

[Andy Summers @Summers_AD]

Switzerland currently raises 1% of GDP from its wealth tax, equivalent to a bit over £500m per week for UK. (But doesn't have CGT or full IHT)

All this and more covered in the evidence papers of the Wealth Tax Commission (https://t.co/ZhSAiM3ThT), available for anyone to read.

[Andrew Neil @afneil]

Your figure is shear fantasy. Show me anywhere in the world that’s had a wealth tax — plenty of examples — that has raised anything like £460m per week. You’re just making stuff up. And even if you got a fair whack in year one (tho nothing like your figures) you’d get peanuts by year 2/3 — because the wealthy would have scarpered. Also, even if you could magically conjure up all that extra money you’d waste it — as so much of the £1 trillion+ the government already spends is wasted by politicians who’ve never run anything.

[Andy Summers @Summers_AD]

@omzidar @USCBOcostest UK gov announced in last Budget it would tax carried interest as trading income from April 2026, but at an (abritrary!) discount capturing only 72.5% of true income - giving an effective rate of 34%. Altho in future this discount rate would be easy to modify...

[Andy Summers @Summers_AD]

@omzidar @USCBOcostest We looked at this in detail for UK and concluded that besides migration (which matters for UK but mostly not for US, given citizenship taxation), the available behavioural responses are very small, especially in short-run. https://t.co/QwNv0ZL9sl

[Andy Summers @Summers_AD]

About those 10,800 millionaires who left the UK... it's based on fewer than 100 people, who changed location on LinkedIn... not a serious study.

@timharford.bsky.social already debunked these stats ages ago. Why are they still being reported as fact?

https://t.co/PxS9nESB3I

[Andy Summers @Summers_AD]

Non-doms are now within IHT regime and will be looking to limit their exposure. Without any cap on AR, this surely involves buying up an absolute tonne of farmland...also not good for real farmers. They will still do this to some extent, as relief at 50% is better than nothing.

[Andy Summers @Summers_AD]

@ahdjoh @20 Apologies you're right that RNRB is tapered on 2nd death in my example, so effectively only £2.8m is tax free. Means that with a £1m tax bill the farm might only be worth £7.8m but I think the general point holds...

[Andy Summers @Summers_AD]

If the farmer who phoned in to #bbclaurak is facing an Inheritance Tax bill of £1m under new rules, she must have a farm worth about £8million. According to HMRC's stats, this would make it one of the 20 most valuable farms facing IHT each year. Might've been useful context for the show!

[Andy Summers @Summers_AD]

@ahdjoh @20 Good question and yes if all used on 2nd death. But solution is to leave £1.5 to kids on 1st death, to use up RNRB and £1m relief optimally. Expect this will become standard planning, even if relief not formally transferable (and RNRB tapered).