20% of tax paid by just 100,000 people

20% of tax paid by just 100,000 people

The total receipts for capital gains tax (CGT) and income tax rose to £262.6bn in 2022/23, with the top 100,000 taxpayers paying one fifth of this, meaning almost £4bn being covered by just 100 people, meaning each of these taxpayers paid an average £39m, as revealed analysis by the Wealth Club.

But it is estimated 9,500 millionaires are expected to leave the UK this year!

However further research has evaluated, ‘If just the top 100 taxpayers decided to move overseas that would be £3.9bn less revenue for HMRC, and if the top 1,000 taxpayers migrated out of the UK, that figure would rise to £10.4bn less in receipts.’

This of course would not just lead to the current tax year seeing huge drops in receipts, but also each subsequent year!

Last year it was estimated that 4,200 millionaires left the country and globally the UAE is the number one destination for high net worth individuals to relocate to followed by the US.

The same research also said that keeping these millionaires here will be a hard task, when 81% of high net worth individuals feel that the economic state of the UK is worse than it was five years ago.

Previously, the UK, London in particular, was a leading destination for millionaires, but in the last decade more millionaires have left the country than entered. The biggest fall came between 2017 and 2023 when the UK lost 16,500 millionaires in total, mainly due to a tightening of the non dom rules.