LL4CO      Half Unit
Taxation of Wealth

This information is for the 2024/25 session.

Teacher responsible

Dr Andy Summers - CKK 6.04

Availability

This course is available on the LLM (extended part-time), LLM (full-time), MSc in Inequalities and Social Science and University of Pennsylvania Law School LLM Visiting Students. This course is available with permission as an outside option to students on other programmes where regulations permit.

Students are strongly recommended to take LL4CG Tax Policy and Design together with (or prior to) this course. Alternatively, students must demonstrate that they have some familiarity with key principles of tax design via previous academic or professional experience. The course is suitable for students from any social science background and non-Law students are also welcome.

 

This course is capped at 30 students. Students must apply through Graduate Course Choice on LSE for You.

Pre-requisites

This course is suitable for students from any social science background, including but not only Law. No previous study of taxation is required. Some prior familiarity with tax concepts is advantageous but not essential. Students are recommended (but not required) to study LL4CG Tax Policy and Design alongside this course.

Course content

The course examines the taxation of wealth (and the wealthy) and evaluates options for reform. It addresses questions such as: Should inheritance tax be paid on lifetime gifts? Should capital gains be taxed at lower rates than regular income? What are the arguments for and against an annual wealth tax? How does the UK’s ‘non-dom’ tax regime work and how should it be reformed? What is the extent of offshore evasion and what steps can be taken to improve compliance?



We will draw on the latest research from multiple disciplines including economics, philosophy and political science, as well as law. The primary focus is on the UK context, although comparisons will also be made with other jurisdictions and students are encouraged to think about implications in their home jurisdiction. For each topic, students will learn (in outline) how existing UK taxes on wealth operate and then consider how they could be reformed.



The seminar topics are: (1) Introduction; (2) Inheritance tax; (3) Taxes on lifetime gifts; (4) Taxes on investment income; (5) Capital Gains Tax; (6) Taxes on property; (7) Net wealth taxes; (8) International dimensions; (9) Trusts; (10) Offshore evasion.

Teaching

This course will have two hours of teaching content each week in Winter Term, either in the form of a two hour seminar or an online lecture and one hour class. There will be a Reading Week in Week 6.

Formative coursework

Students will receive formative feedback on one 1500-word essay or equivalent essay plan, based on past or sample summative essay titles.

Indicative reading

Advani, A., and Summers, A. (2023), ‘How Much Tax Do the Rich Really Pay? Evidence from the UK’, Oxford Review of Economic Policy



Advani, A., Chamberlain, E., and Summers, A. (2020), ‘A Wealth Tax for the UK’, Wealth Tax Commission Final Report



Alstadsæter, A., Johannesen, N., and Zucman, G. (2019) ‘Tax Evasion and Inequality’, American Economic Review, 109, 2073-2103



Corlett, A. (2018), ‘Passing On: Options for Reforming Inheritance Taxation’, Resolution Foundation

Delestre, I., Kopczuk, W., Miller, H., and Smith, K. (2022), ‘Top Income Inequality and Tax Policy’, IFS Deaton Review of Inequalities

Mirrlees, J., Adam, S., Besley, T., Blundell, R., Bond, S., Chote, R., Gammie, M., Johnson, P., Myles, G., and Poterba, J. M. (2011), Tax by Design: The Mirrlees Review, Vol. 2, Oxford: Oxford University Press

Office of Tax Simplification (2018), ‘Inheritance Tax Review – First Report: Overview of the Tax and Dealing with Administration’

Sandford, C. (1987), ‘Death Duties: Taxing Estates or Inheritances’, Fiscal Studies, 8, 15-23

Scheuer, F., and Slemrod, J. (2020), ‘Taxation and the Superrich’, Annual Review of Economics, 12, 189– 211

Summers, A. (2021), ‘Ways of Taxing Wealth: Alternatives and Interactions’, Fiscal Studies, 42, 485–507

 

Assessment

Exam (100%, duration: 2 hours and 30 minutes) in the spring exam period.

Key facts

Department: Law School

Total students 2023/24: 5

Average class size 2023/24: 5

Controlled access 2023/24: No

Value: Half Unit

Guidelines for interpreting course guide information

Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Personal development skills

  • Self-management
  • Team working
  • Problem solving
  • Application of information skills
  • Communication
  • Application of numeracy skills
  • Specialist skills