Dr Andy Summers - CKK 6.04

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.

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.

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.

This course will have two hours of teaching content each week, 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.

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

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

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

Students must answer two essay questions (3,000 words each) from a set of essay titles.