Academics Propose 2% Tax on Assets Over £100m to Raise £10bn

Academics have proposed a 2 per cent tax on households holding more than £100 million in assets, estimating it would raise £10 billion a year and apply to fewer than 1,000 UK households. The report argues that HMRC could calculate the wealth of rich families by including property, private businesses, pension holdings, art, land and charitable assets.

Authors state the data collection would not require new systems because the work is already underway.

The plan would require families to pay the tax for ten years after leaving the UK. It focuses on extreme wealth rather than a broad-based levy and aims to align tax rates paid by billionaires with those paid by others. The report notes that past European wealth taxes often failed because they covered large sections of the population or exempted private business assets, creating avoidance opportunities and political opposition.

The new prime minister has indicated possible tax reforms.

Andy Burnham has declined to rule out a wealth tax and told Gary Lineker this month that the government may need to ask for more revenue. Cabinet minister Louise Haigh has separately called for a wealth tax and for equalising capital gains tax with income tax, writing that the change would shift the burden away from work and toward unproductive capital accumulation.