Wealth Tax on UK Super-Rich Could Raise £10bn Annually 2026

A proposed wealth tax on the UK’s super-rich households could raise £10bn a year, according to academics advising Andy Burnham. The plan targets fewer than 1,000 families with more than £100m in wealth, aiming to close the inequality gap and fund better public services.

What Is the Proposed Wealth Tax?

The study by Gabriel Zucman (Paris School of Economics and UC Berkeley) and Ben Tippet (King’s College London) suggests a 2% minimum charge on net wealth exceeding £100m. This would affect only the richest 0.003% of UK households yet generate significant revenue for public investment.

Andy Burnham, the new prime minister, has hinted that a wealth tax could feature in his 10-year plan to “make tax fairer.” However, his advisers have also explored raising capital gains tax to match income tax rates as an alternative revenue source.

How the Wealth Tax Would Work

The academics propose that HMRC calculate total accumulated wealth of the richest families, including property, private businesses, pension pots, art, land, and charitable assets under their control. The tax would be simple to administer because it targets a tiny, easily identifiable group.

Revenue Potential

If implemented, the tax could raise up to £10bn annually—enough to fund substantial improvements in healthcare, education, and infrastructure. The report states: “The objective is not a broad-based wealth tax affecting millions but a focused tax on extreme wealth that can make billionaires pay the same tax rates as the rest.”

Key Takeaways

• Targets extreme wealth: Only households with over £100m in total assets would pay.
• Raises substantial revenue: £10bn per year without burdening middle-income earners.
• Promotes fairness: Ensures billionaires contribute proportionally to public services.
• Easy to administer: HMRC already holds data on the wealthiest families.
• Cross-party interest: Andy Burnham has publicly called for a fairer tax system.

Potential Impact on Inequality

Supporters argue that a wealth tax would “dampen runaway inequality” and restore public trust. Critics worry it could drive capital abroad, but the academics note that the UK already has robust anti-avoidance measures. Similar taxes exist in countries like Switzerland and Norway.

Burnham himself said recently: “I do believe we need a greater sense of fairness and people feeling things are being done in the right way.” He added that he doesn’t want to “demonise one group,” but the proposal is designed to tax extreme wealth lightly—just 2%—without punishing entrepreneurs.

FAQ

As the debate over wealth tax intensifies, all eyes are on Andy Burnham’s upcoming budget. Will he take the bold step of taxing extreme wealth? The academics say the case is clear: a focused, fair tax could raise billions and reduce inequality without harming the economy.