Talk to anyone in Britain about tax, and you’ll hear the same mix of frustration and tired jokes about where the money actually goes.
Most people don’t mind contributing to public services, but they do want a system that feels fair, transparent and rooted in common sense. Right now, plenty of people feel the balance is off, and they’re keen for changes that match the reality of everyday life rather than political soundbites.
What’s interesting is that the reforms people want aren’t extreme or unrealistic. They’re practical, widely shared, and shaped by what people see in their own budgets each month. When you listen closely, there’s a clear pattern in the ideas that get the strongest nods. Here are the tax changes that most Brits (save the millionaires and billionaires, of course) would genuinely support.
1. Closing tax loopholes for the ultra-wealthy
Everyone knows that really rich people and massive companies use tricks to pay way less tax than they should. You hear about billionaires paying less tax than a nurse, and it’s infuriating. They’ve got expensive accountants who know all the ways to move money around, claim stuff as business expenses, or move profits to countries where they barely pay anything.
If these loopholes got closed, everyone would have to play by the same rules. It’s not about hating rich people, it’s just about fairness. When you see tax coming straight out of your payslip every month while billionaires find ways round it, obviously you’re going to be annoyed. Make them pay their share like everyone else does.
2. Making council tax fairer based on current property values
Council tax is still worked out based on what your house was worth in 1991. That’s over 30 years ago. Your house might be worth ten times more now, but you’re paying tax like it’s still the ’90s. Some people in expensive areas pay relatively little, while others get stung. The whole thing is out of date and doesn’t make sense anymore.
If they updated it to current house prices, some people would pay more and some would pay less. That’s fairer. Your tax should be based on what your house is worth now, not what it was worth when everyone had brick-sized mobile phones. It just makes sense.
3. Increasing taxes on second homes and investment properties
There’s loads of anger about people who own loads of properties, while young people can’t afford one home. Second homes sit empty in nice areas where locals are priced out. Rich landlords snap up properties, pushing prices up for everyone else. Meanwhile, these people often get tax breaks that normal homeowners don’t get.
Whacking up taxes on second and third properties would stop people hoarding them. It would free up homes for people who actually need somewhere to live. Most people only own one home, so this wouldn’t affect them at all. However, it would tackle a problem that really winds people up about the housing market.
4. Scrapping inheritance tax for average families
Inheritance tax is massively unpopular, even with people who’ll never actually pay it. It feels wrong to tax money that’s already been taxed your whole life. The cut-off is £325,000 per person, which doesn’t go far when a normal family home costs that much in loads of places. You work your whole life, pay tax on everything, then the government takes another chunk when you die.
Most people would scrap it completely, or at least raise the limit massively. Let normal families pass on their home without getting taxed. But keep it for properly massive inheritances worth millions. That way, it only hits actual wealth, not just ordinary families who happened to buy a house that went up in value.
5. Introducing higher taxes on luxury goods
When someone buys a yacht, a private jet, or a £100,000 watch, they can obviously afford extra tax on it. These are luxury purchases that only super-rich people buy. Taxing them heavily doesn’t hurt normal people at all. France already does this, and it brings in loads of money from people who won’t even notice.
This just feels fair to people. Why should school uniform have the same VAT as a Ferrari? Luxury taxes only hit people spending stupid amounts of money on stuff they don’t need. It raises money from people who have loads to spare without affecting anyone else.
6. Reducing VAT on essential items
VAT at 20% is on nearly everything—your gas bill, your kid’s shoes, everything. It takes the same percentage whether you’re skint or loaded, which means it hits poor families way harder. Some basics like food don’t have VAT, but loads of things people genuinely need still get charged. Energy bills especially get hit hard. You’re already struggling with rising prices, then there’s VAT on top.
Cutting VAT on essentials would put money straight back in your pocket. You’d notice it immediately in your shopping and bills. The government would lose money, sure, but they could make it up by taxing luxury stuff or closing loopholes instead of squeezing people who can barely pay their heating.
7. Making big tech companies pay their fair share
Companies like Amazon, Google, and Facebook make billions from British customers but pay hardly any UK tax. They use complicated setups to move profits to countries with lower taxes. Your local shop pays full tax on everything, but these massive companies don’t. It’s completely unfair and gives them a huge advantage.
A proper tax on these tech giants would make them pay based on what they actually earn here. It’s just common sense. If you’re making money from British customers, pay British taxes. It’s not anti-business, it’s just fair. Everyone should pay their share, not just the people without fancy accountants.
8. Simplifying the tax system overall
The UK tax code is thousands of pages long and nobody understands it. There are special rules and exceptions for everything. Small business owners spend hours doing paperwork or have to pay accountants because you can’t figure it out yourself. The complicated system mainly helps rich people who can afford experts to find all the ways to pay less.
A simpler system would save everyone time and money. If normal people could understand the rules, there’d be fewer tricks to dodge taxes. Some countries have dead simple tax systems that work fine. Making things complicated doesn’t make them fairer. It just makes it easier for wealthy people to game the system.
9. Increasing taxes on gambling companies
Gambling companies make massive profits, often from people who can’t afford to lose. Online betting is everywhere now, and these companies advertise constantly despite all the harm gambling does. They’re taxed at pretty low rates compared to other businesses, even though gambling causes addiction and money problems that we all end up paying to fix.
Higher taxes on gambling would bring in money from an industry loads of people think is dodgy. The money could help people with gambling addictions. Most people don’t gamble heavily, so it wouldn’t affect them. It targets profits from something harmful, like we do with fags and booze.
10. Reforming pension tax relief
Right now, the pension tax system gives bigger breaks to high earners than to normal people. If you’re in the higher tax bracket, you get 40% tax relief on pension savings. Basic-rate taxpayers only get 20%. So people who can already afford to save loads get rewarded more by the government. It costs billions and mainly helps people who don’t need the help.
Give everyone the same rate of relief regardless of what they earn. That’s fair. High earners would still benefit from pensions, just not way more than everyone else. The money saved could go towards the state pension or social care, which would help far more people.
11. Introducing a wealth tax on assets over a high threshold
Income tax only taxes what you earn each year, not wealth you’ve already got. Someone with £50 million in the bank might pay less tax than someone earning £60,000 if they’re not bringing in much income. Wealth inequality has gone mental. A tiny number of people own a huge chunk of everything. This wealth often grows in value without any tax being paid.
A small yearly tax on wealth over something like £5 or £10 million would only hit very few people but bring in loads of money. It would tax actual wealth, not just income, which feels fairer. Hardly anyone would pay it, and the people who would can easily afford to. Other countries do this and they’re fine.
12. Removing tax advantages for non-domiciled residents
The non-dom rules let rich foreigners live in the UK but dodge tax on money they earn abroad. They get all the good stuff about living here like safety, the NHS, and roads without paying properly. It’s a special deal that normal British people don’t get. If you’re born here and earn money abroad, you pay UK tax. But if you’re rich and claim foreign status, you can avoid it.
Scrap it. Make everyone living here long-term pay tax on all their income like everyone else does. The argument that they’ll leave is rubbish. They’re here because they want to be. Most people think it’s outrageous that super-rich people can live here permanently while dodging taxes everyone else has to pay. It’s a loophole that only helps people who need it least.
