Interesting discussion on Bloomberg’s Daybreak recently, drawing on analysis from Tax Policy Associates, highlighting that the UK now has close to 90 different taxes.
That’s the highest level since the 1830s and the Napoleonic era. And whilst our neighbouring France operates a far broader system with hundreds of separate taxes, our German counterparts raise a similar, if not higher, level of revenue through a much smaller number of core taxes.
So, what’s the right approach - more taxes, or simply more complexity?
Whilst the answer is far from clear, it reinforces a key point for the UK, the direction of travel is more taxes, more complexity and a steadily increasing tax take.
Where this truly resonates is in the day-to-day or clients. In practice, complexity doesn’t present itself as “90 taxes”, it shows up in moments where clients make well considered, objective-led decisions without realising the tax consequences they may trigger.
For example:
Making a gift or asset transfer and inadvertently triggering a lifetime IHT charge
Expecting CGT relief to apply, only to find it is restricted or unavailable
Assuming business interests qualify fully for IHT relief, without considering limits, excepted assets or group structures
Holding what appears to be exempt property in a company, without recognising ongoing ATED compliance obligations
None of these scenarios are unusual, they arise in the normal course of business and family life. But tax is rarely front of mind at the point decisions are made and is often simply overlooked.
Viewed through that lens, the international comparison becomes more than just a statistic — it highlights how system design (and complexity) feeds directly into real-world outcomes for clients.
Layer onto that a tougher compliance environment with more reporting, greater scrutiny and more meaningful penalties and it’s easy to see how issues can escalate quickly.
The need for more dynamic, proactive tax advice has never been greater. Tax can’t be an afterthought, it needs to form part of the conversation from the outset, with the right input early on. And as advisers, there’s a role in helping clients recognise that shift in mindset.
In an increasingly complex system, good advice isn’t just helpful it’s becoming essential. So as HMRC continues to invest in identifying and mapping non-compliance across increasingly complex tax footprints… are clients (and advisers) ready to keep pace?
You can listen to the full podcast here.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
