Wealth tax rise could raise £174bn to tackle Covid-19, expert says

UK taxes should be central to debate on paying for pandemic, suggests Richard Murphy

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The government has the potential to raise up to 174bn a year to help cope with the Covid-19 crisis if it taxed wealth at the same rate as income, a UK tax expert has said.

Richard Murphy, a professor in political economy at City University in London, said income was being taxed at almost 10 times the rate of wealth - and that the disparity should be central to any debate about who should pay for the pandemic.

Introducing a capital gains tax charge on former main residences passed on after death, with the exception of cohabiting spouses and civil partners and recognised long-term related carers.

Equalising the tax rates on income and capital gains.

Significantly reducing the annual capital gains tax allowance.

Abolishing higher-rate tax reliefs for pension contributions.