The proposals, set out by Demos, are designed to generate £21 billion in additional revenue without increasing the main rates of VAT, income tax, or individual national insurance contributions

A cross-party think tank has called on Chancellor Rachel Reeves to introduce a series of tax reforms aimed at landlords, owners of high-value homes, and wealthy investors who leave the UK.

The proposals, set out by Demos, are designed to generate £21 billion in additional revenue without increasing the main rates of VAT, income tax, or individual national insurance contributions.

Among the eight recommendations, Demos suggests the introduction of an “exit tax” for investors relocating from the UK, the application of national insurance to rental income, and the requirement for those inheriting assets to pay capital gains tax on the increase in value since the assets were purchased, rather than from the date of inheritance.

The think tank argues that these changes would create a fairer tax system by easing the burden on salaried workers, removing preferential treatment for capital gains, and limiting tax reliefs on inherited assets. Demos maintains that these reforms would address perceived imbalances in the current tax structure.

Research commissioned by Demos and conducted by Opinium in April indicates broad support for the proposals across the political spectrum. The survey found that 39% of Reform UK supporters would back an exit tax, while around 40% supported an additional council tax charge on properties valued above £2 million. The survey also suggested that the public would be less supportive of balancing the budget through spending cuts, especially in areas such as investment, the NHS, and welfare.

The public can get behind tax rises if designed with their priorities in mind, said Dan Goss, lead researcher at Demos. The pursuit of a fairer tax system is a vital step towards fixing the fraying social contract between citizen and state.