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SIPP Wealth Tax?

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  • Albermarle
    Albermarle Posts: 27,991 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Also the populace ( or some of them at least) seem to find it difficult to differentiate between anyone earning quite a lot more than them ( say £80K +) and the Super rich . They tend to lump them all into the same 'they must pay more tax ' bracket. 

  • NedS
    NedS Posts: 4,535 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    A SIPP (pension) is a tax wrapper and anything within a pension has traditionally been excluded from taxation. Pension assets are not even considered for means tested benefits - even pension contributions are completely disregarded from income. DWP have a hard enough time convincing most people to save for their futures (hence all the incentives), I find it highly unlikely that pension assets would fall for consideration under any wealth tax proposals. So in answer to the OP, I would think that locking assets away in a pension wrapper should actually afford some protection against the introduction of a wealth tax over other assets/wrappers such as ISA's. Also, how would you tax (wealth tax) an asset that isn't immediately available to the beneficiary? From where would they get the money to pay the tax?
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