Tax after coronavirus Contents

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Contents

Summary

1 Introduction

2 The scale of the public finances challenge

The fiscal legacy of coronavirus

The long-term fiscal gap

Scope for raising additional tax revenue

3 Support for business

Increasing the period over which losses can be carried back

Increased capital allowances

4 Windfall and wealth taxes

Introduction

Windfall taxes on business

Wealth taxes

Growth of wealth

An annual wealth tax

The one-off wealth tax

5 The major contributors to tax revenues

The importance of income tax, National Insurance and VAT to tax yield

Income tax

The standard rate of VAT

Rates and thresholds of national insurance contributions

Overall recommendation on income tax, VAT and NICs

Rate of corporation tax

Tax relief on pension contributions

6 Priorities for tax reform

Taxing income from work

Inconsistencies between tax contributions under different forms of work

The long-term shift in burden of taxation from income tax to NIC

Differences in taxation between different legal forms of work

Should the income of the self-employed be taxed at the same rate as employees?

Limited companies

Merger of NICs and income tax

Taxation of pensions

Digital services tax

Capital gains tax and inheritance tax

Retail sales tax as an alternative to VAT

Changes to the scope of VAT including reduced and zero rates

The role of taxes in greening the economy

Stamp duty land tax

Council tax

Business rates

7 Tax strategy and simplification

Tax strategy

Tax policy making process

The case for tax simplification

The Office of Tax Simplification

HMRC and tax administration

The case for a tax commission

Conclusions and recommendations

Formal minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliament