VAT should extend to financial services, says IFS

It said the UK applies a zero rate of VAT to far more goods and services that most other countries and believes a change could reduce complexity and, as a result of the extra money raised, lead to a reduction in income tax. It pointed out it believes it would be "hard to apply" VAT to financial services in the same way it is applied to other goods and services, but it said a tax "broadly equivalent" to VAT should be applied. The review also suggests inheritance tax (IHT) should be completely changed because it is ‘ineffective', and allows the wealthy to avoid paying it by exploiting l...