UK taxes are confusing, unfair… and sometimes downright broken.

But what if we could fix them? Let’s explore stamp duty, inheritance tax, pensions, and welfare — and the possible changes that could make life easier.

Meet Sarah, a nurse in Manchester.
She wants to move closer to her new job and buy a £400,000 house. But HMRC wants £10–20,000 in stamp duty before she even gets the keys.

The result? Sarah stays put, even though her current home doesn’t suit her needs — and maybe her career suffers.

Proposed change: Replace stamp duty and council tax with a small, proportional annual property tax.

Sarah pays a fair share every year.

No huge upfront shock when buying a house.

People are freer to move, downsize, or upsize as needed.

Trade-off: Some homeowners might pay more each year, but it’s fairer overall and avoids locking people into unsuitable homes.

Now meet John, an engineer who saved £200,000 in his pension.
He can currently take 25% tax-free — that’s £50,000! Sounds generous, right? But someone with a £1 million pension pot would take £250,000 tax-free.

Proposed change: Limit the tax-free lump sum or reduce the percentage.

Makes the system fairer for everyone.

Could raise extra funds for the government.

Trade-off: People who’ve worked hard and saved might feel punished. Timing of any change is key so retirees aren’t caught off guard.

Inheritance tax: Mary’s story.
Mary inherits her late father’s house worth £500,000. She faces a 40% tax bill — £200,000 gone just like that.

Yet inheritance tax only raises £7–8 billion a year — tiny compared to £200 billion from VAT — and it encourages people to hire expensive lawyers to avoid it.

Possible fixes:

Lifetime gift tax: Tax gifts as they are received over a person’s life.

Lower rate, broader base: Spread the tax more evenly, reduce the shocking 40% rate.

Scrap it altogether: Some argue it’s immoral to tax families at death.

Trade-off: Make it broader → more resentment. Keep it narrow → loopholes for the rich. It’s tricky.

Now meet Tom, unemployed, trying to get by.
Some suggest giving him £1,000 a month just for being alive — universal basic income.

US trials gave people extra money, but the results surprised everyone:

People didn’t improve their health, education, or happiness.

They worked less.

Lesson: Direct cash isn’t enough. But simpler welfare could help:

Fewer means tests.

Less bureaucracy.

Some conditions to keep work incentives.

Trade-off: Must balance support and motivation to work. Too much free money → reduced effort. Too strict → people trapped in poverty.

The reality:

Stamp duty could be replaced with a fairer property tax (Sarah’s freedom to move).

Pension relief might need rebalancing (John’s retirement savings).

Inheritance tax could be reformed — tricky moral choices (Mary’s inheritance).

Welfare could be simplified, maybe inspired by UBI lessons (Tom’s work incentives).

Every change has winners and losers, which is why politicians are cautious. But smart reform could make life fairer for everyone.

Question for you: If you could change ONE UK tax, what would it be? Stamp duty, inheritance tax, pensions, or welfare? Comment below — we’d love to hear your thoughts!

*Image credit - ChatGPT