Amount UK's richest pay in income tax revealed

Sixty of the wealthiest radical successful the UK collectively contributed much than £3bn a twelvemonth successful income tax, the BBC has learned.

The magnitude of income taxation they paid is astir equivalent to astir two-thirds of Labour’s full further spending commitments successful their manifesto earlier this year.

Each of the 60 individuals had an income of astatine slightest £50m a twelvemonth successful 2021/22, but galore volition person earned acold much and astir apt wage ample amounts successful different taxes too.

There is interest taxation rises successful this month's Budget could punctual an exit of the super-rich, hurting UK finances. Labour ruled retired income taxation changes, but Chancellor Rachel Reeves near the doorway unfastened for different taxation hikes.

A Treasury spokesperson said the authorities was committed to "addressing unfairness successful the taxation system".

Swiss banking elephantine UBS predicted successful July the UK would suffer fractional its millionaires by 2028, partially arsenic a effect of immoderate switching to low-tax countries.

The Institute for Fiscal Studies said the Treasury needed to beryllium alert that a tiny fig of this super-rich radical leaving the state would make a "relatively large spread successful its finances”.

But the Green Party argued claims taxing the affluent much would pb to them leaving the UK were not credible.

The BBC reported past month astir concerns wrong the Treasury that 1 of the main fundraisers for those pledges, the scrapping of the non-dom scheme, would rise acold little wealth than archetypal hoped.

Scrapping that scheme, which allows a UK nonmigratory to beryllium registered overseas for taxation purposes, was initially thought to beryllium worthy £1bn.

Government ministers person besides said the erstwhile Conservative authorities near a £22bn “black hole” successful the nationalist finances.

This has led to discussions wrong authorities astir imaginable taxation increases successful the forthcoming Budget and successful August the chancellor refused to regularisation retired an summation successful superior gains tax.

Stuart Adam, a elder economist astatine the IFS, said reports of affluent individuals leaving the UK were presently conscionable anecdotal.

But helium warned that it would not instrumentality a wide exodus to origin issues for the nationalist coffers, arsenic “tax payments are precise concentrated connected a tiny fig of people”.

“There's intelligibly a hazard determination that Rachel Reeves has to deliberation about," Mr Adam said.

“Some of the taxation changes that person been speculated are precise concentrated connected those astatine the apical of the income distribution."

There could “be much astatine involvement from these radical than conscionable the income taxation they're paying” arsenic the individuals successful question would apt beryllium paying ample amounts successful different forms of taxation specified arsenic superior gains, Mr Adam added.

Green Party co-leader Carla Denyer warned against taking threats by the ace affluent to permission the state seriously.

“This didn’t hap erstwhile changes were made to non-dom presumption successful 2017,” she said.

“There are tons of reasons that the affluent take to unrecorded successful the UK, including work, household and culture, and galore are blessed to wage a spot much if it means a happier and healthier society."

The figures, which were compiled by HMRC, person been obtained done Freedom of Information laws and subordinate to 2021/22, the latest twelvemonth for which information is available.

That year, the UK had a full income taxation receipt of £225bn, with contributions from immoderate 33m taxpayers.

The 60 radical with incomes of much than £50m made up conscionable 0.0002% of UK taxpayers and unneurotic paid 1.4% of the income taxation receipt.

HMRC initially blocked the merchandise of the accusation connected the grounds that disclosing the figures would place the individuals successful question.

But the authorization agreed to merchandise the information aft further requests by the BBC.

The IFS has said a mode to dissuade affluent individuals from leaving the UK could beryllium to present an "exit tax".

Some different countries "say that if you permission the UK, we volition taxation you connected gains that person accrued portion you're here, adjacent if you don't merchantability the plus until later", Mr Adam said.

“And symmetrically, we volition exempt radical who built up gains earlier they came to the UK, adjacent if they merchantability assets portion they're here.”

A Treasury spokesperson said: “We are addressing unfairness successful the taxation strategy truthful we tin rise the gross to rebuild our nationalist services.

"That is wherefore we are removing the outdated non-dom taxation authorities and replacing it with a caller internationally competitory residence-based authorities focused connected attracting the champion endowment and concern to the UK.”