Daisy Cooper

Our tax system is a mess. It is complicated and unfair. It is riddled with cliff edges that distort behaviours and create inequities, and there are exemptions that have not been reviewed for years. Council tax is outdated and hated. Inheritance tax and capital gains allow the super-wealthy to exploit loopholes while the squeezed middle picks up the tab. Business rates are a tax on bricks and mortar that penalise our high streets while online giants corner more and more of the market. IR35 is a sledgehammer to crack a nut for contractors, and research and development tax credits are in such a muddle that they are triggering lots of disputes, even for legitimate claims. When any one of those taxes is tweaked, it causes problems elsewhere. Time and again, we see that when people want to do the right thing and pay the right amount of tax or query a tax issue, they call His Majesty’s Revenue and Customs, only to have the call handler hang up, or they contact the Valuation Office Agency and have to spend money on an expensive third party that specialises in disputes. Stamp duty has all the hallmarks of a bad tax. It is a transaction tax and an extra cost that stops people from moving, when they might want to move to start a family, to take up a new job or to take on caring responsibilities. It prevents people from getting on the housing ladder, from upsizing and sometimes from downsizing. It gums up the housing market in a country where we simply cannot afford for that to happen. It disincentivises people from moving and holds back a dynamic economy.