Revealed: Income tax contributions of UK’s wealthiest

The 60 wealthiest individuals in the UK contributed over £3 billion annually in income tax. 

A recent article in British media reveals that each of these individuals reported an income of at least £50 million in the tax year 2021/22, with many earning significantly more and likely contributing substantial sums through other taxes as well, per Caliber.Az.

The Institute for Fiscal Studies (IFS) highlights the UK tax system's heavy reliance on this small group of high earners. Concerns have arisen that proposed tax increases in the upcoming Budget could drive the super-rich away, potentially jeopardizing UK finances. While the Labour Party has ruled out any changes to income tax, Chancellor Rachel Reeves has indicated that other tax hikes remain a possibility.

The income tax contributions from these 60 individuals represent approximately two-thirds of Labour’s additional spending commitments outlined in their manifesto earlier this year. Additionally, Swiss banking giant UBS predicted that the UK could lose half a million millionaires by 2028, with many considering relocation to low-tax countries.

The IFS cautioned that even a few high earners leaving could create a “relatively big hole” in public finances. Despite claims that taxing the wealthy would prompt their exodus, the Green Party argued such assertions are not credible.

The figures in question were obtained through Freedom of Information laws and relate to the 2021/22 fiscal year, during which the UK collected a total of £225 billion in income tax from approximately 33 million taxpayers. The 60 high earners, representing just 0.0002% of UK taxpayers, collectively accounted for 1.4% of total income tax receipts.

Initially, HMRC resisted the release of this information, citing concerns over identifying individuals. However, the authority later agreed to disclose the data following additional requests from the BBC.

The IFS proposed that introducing an “exit tax” could deter wealthy individuals from leaving the UK, requiring them to pay taxes on gains accrued during their time in the UK, even if those gains are not realized until later.

By Tamilla Hasanova