GLOSSARY
Windfall tax definition
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What does Windfall tax mean?
Windfall taxes in the UK are taxes imposed on companies that have unexpectedly received a large financial gain due to a specific event or circumstance. The term "windfall" refers to an unexpected, sudden, or unplanned gain. Windfall taxes are typically designed to raise revenue for the government by targeting specific industries or companies that have received extraordinary profits, such as those resulting from privatizations or favorable market conditions. The UK government has used windfall taxes in the past to target specific industries such as energy, banking, and telecommunications, with the aim of redistributing the financial gain to the wider population or funding public services.
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