Hypo wot thecation? A blog post about tax

Tax by Nick Youngson CC BY-SA 3.0

Hypothecation – I’d never hear about this before but it maybe of interest connected to issues around Land Value Tax and Land Uplift Capture or whatever else we are calling ways of preventing land speculators from profiteering these days…

The Responsible Tax Lab write:

The concept of hypothecation, where revenues from specific taxes would be ringfenced for a particular expenditure purpose – and publicly communicated in this way – has traditionally been unpopular with many. This is because of the notable challenges, relating to complexity, transparency, and public perceptions, with which it is associated. However, there is growing interest in how hypothecation could help engage with tax policy and increase public trust in the system.

Many people who call for a change in the way land is taxed also have called for the new tax income to be ring-fenced for using on connected issues. E.g. a land value tax going towards buying land for self build homes or re-commoning or supporting entrant farmers etc.

Anyways, here is an article written by the Head of Tax from PWC which goes into more depth! https://www.huffingtonpost.co.uk/entry/could-health-and-social-services-be-safeguarded-by_uk_5a783496e4b0414342903948

 

 

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