10 Tax Rises The UK Government Are Trying To Push Through
17 07 2007While the UK taxation burden increased dramatically under the leadership of Tony Blair, it is about to get a whole lot worse under the leadership of Gordon Brown, the Ex-Chancellor of The Exchequer. Below we have listed at least 10 weird and wonderful ways which the Government will use to tax you yet further - many without you even realising!
Orphan Assets
Many financial institutions such as insurance companies have sizeable ”orphan assets”, which are basically assets which may be the excess from with profits reserve funds, policies which have not been claimed or dormant bank accounts.
While many of the financial institutions have shareholders, not to mention massive customer bases, the Government have decided that they should be able to take these funds and use to fund their spending plans. Is Gordon Brown turning into a modern day Robin Hood or is this just day light robbery?
While many will dismiss this as not worth talking about, the figures at stake actually run into billions of pounds, that is billions of pounds created by investors, clients and the like. Plans are already in place for this facility to be introduced in the short term (possibly this year) although the Government have managed to keep this tax grab fairly quiet.
Pay As You Travel
Even after the massive ground swell of public support against introducing pay as you go travel - whether this would be for the cars, bikes or scooters - the Government still believe that they know best. In a massive snub to the public’s view of the idea, the authorities are already well down the line with regards to introducing pay as you go travel, cleverly disguised as a “green tax”.
The truth is that the authorities have been looking to use the “green” lobby as a smoke screen for tax increase for a number of years, and it just happens that with the subject of global warming high on the agenda, they think they can rail road the public.
Taxing Household Waste
This is perhaps one of the more cheeky attempts to extort yet more tax from the UK population, with the planned introduction of a waste tax. Despite the fact that council taxes continue to rise, yet refuse collection has been cut to once every two weeks in many areas of the country, the public are looking at yet more taxe charges for not “recycling” their waste.
The fact that many areas of the country are over flowing with bin bags which can be around for anything up to two weeks, is of no interest to the authorities, never mind the increased risk of rats,. etc. This is the most blatant case of increased taxes, less services and more pressure on the public to do it themselves.
Taxation Increases On Alcohol
Again this is one of the most bizarre taxes bearing in mind the UK government have just pushed through 24 hour drinking, then again, more time to drink, more sales equals more tax revenue?
Not with standing the increased sales, the authorities are now looking to tax certain drinks which are being targeted at the younger end of the market. The very same drinks supplied by the companies which are already charged tax by the authorities on their business activities - a case of double taxation?
By targeting minority areas of society the government are leaving themselves open to charges of victimisation, with many believing that this is only the thin end of the wedge. As the taxation increase slowly moves up the society chain, we will all see a steady increase in our taxes.
Increased Airport Tax
Even your sacred holiday will soon come under more taxation pressure with the government set to push ahead with an increase in airport taxes - all in the name of the environment!
Again, the authorities have encouraged the massive rise in air travel, and especially the low cost airlines who bring in much need income and tourists to the country. However, the market is now of a size where it can no longer grow at the same rate, and the authorities are keen to increase there tax take. “Green” taxes, a great idea, and set to bring in about £1 billion a year!
Fat Tax
If the proposed “fat tax” were target at any other area of society there would be a massive backlash and calls of discrimination. However, for some reason the food industry has become one of the main targets for increased taxes, under a variety of guises.
The “fat tax” is the latest attempt to “help” society although surely extra investment into the problems of obesity should start with the health service, and support groups? This tax is set to bring in millions for the authorities, and yet again may just be the thin end of an ever expanding wedge.
EU Tax On Children’s Wear
For many years the UK has had a 0% VAT policy on all children’s clothing, which includes nappies. This looks set to change with the EU using the powers of control which the government recently handed over to them, to push through taxation “harmony” across Europe.
Many of the UK public are unaware that children’s clothing etc does not attract VAT charges, but they may soon be in for a shock!
Property Stamp Duty Increase
While the UK property market looks set to continue for at least a little while yet, the authorities look set to increase the rate of stamp duty on all house purchases, in a move which will raise millions of pounds. The fact that the market is still moving ahead will be the perfect cover for this latest smash and grab, with many investors awash with profits, and not overly concerned about any “small” increase.
Will these same parties be quite so understanding when the market falls back, and their costs increase?
Bizarre But True
For our last two tax charges we take a look at some of the most bizarre changes ever to been discussed in Parliament. These include :-
A Chewing Gum Tax
Seriously, this proposed tax has been mentioned on a number of occasions and as bizarre as it may sound it has actually received a number of “hearings” in the houses of parliament. The MP who has suggested this claims that the extra cost of cleaning the streets of chewing gum should be covered by the consumer - but would any tax income ever really reach the everyday street cleaning services?
I doubt it very much.
“Second Life” Tax Charge
As many of you may be aware there has been a massive increase in the number of people using the internet to participate in “reality worlds”. Second Life is the leader of the sector with millions upon millions of players worldwide, and a “virtual” economy which is growing everyday, having made a few people real life millionaires.
The virtual currency, the “Linden”, is actually acquired by converting real life currencies into “Linden” money and investing in Second Life. Many people have grown virtual businesses and property portfolios then cashed in, taking their funds out and converting their “Lidnen” dollars back into “real” money.
It is this conversion to “real” money which the UK authorities are taking a great interest in, and despite the fact that the “Linden” is only a virtual currency they are trying to find legal ways of taxing the returns of individuals. “Virtual world”, real taxes - whatever next?












