Valuation

This paper considers valuation issues under a wealth tax. Valuation issues are frequently cited in the literature as the most problematic aspect of wealth taxes. First, we discuss some general issues, arguing that valuation should be based on ‘open market value’, but recognising that this value may be determined using either market transactions, future income or cost-based approaches, depending on the relevant practical constraints. Second, we turn to an examination of the most problematic asset types from a valuation perspective and consider a range of solutions to manage these concerns, drawing on international experience and the approaches already taken for other taxes within the UK system.

DOI: 10.47445/109
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