The Taxing Wealth Report 2024 recommends removing the VAT exemption for financial services in the UK to raise revenue and reduce wealth inequality. This exemption primarily benefits wealthier individuals, and its removal, made possible by Brexit, could generate an additional £8.7 billion in tax revenue annually, according to HM Revenue & Customs. This change would also extend VAT to insurance products, but if insurance premium tax is simultaneously abolished, it is unlikely to significantly impact lower-income individuals. In total, the first two proposals in the report could potentially raise £23.2 billion in revenue.
Source: taxresearch.org.uk
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