Closing the VAT Loophole: A Fair Solution to Britain’s Budget Shortfall

• Rachel Reeves faces a potential £40 to £50 billion budget shortfall.
• A proposed solution is to apply VAT to financial services, which currently do not charge VAT.
• This exemption benefits the wealthy, as they use financial services more.
• Charging a 20% VAT on these services could generate £8 billion annually.
• The tax would primarily affect the wealthy, not ordinary people.
• The issue is framed as one of social justice.
• The decision involves whether to tax the wealthy or protect financial services in the City.

Source: taxresearch.org.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---