After all the myths we’ve heard, let’s discuss wealth taxes: a few pertinent facts seem to be needed.
Let’s start with the big question:
Is it true that in the UK a two per cent tax on people with wealth over £10 million could raise £24 billion a year?
Yes it is. This claim is based on estimates from the UK Wealth Tax Commission, which analysed the potential revenue from different forms of wealth taxation. A one-off wealth tax of two per cent on individuals with more than £10 million was projected to raise around £80 billion over five years, which averages £16 billion per year.
But if it were an annual tax, some estimates suggest it could raise more—closer to £24 billion per year—depending on compliance rates, asset valuation, and avoidance strategies.

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Would rich people leave the country to avoid it?
Possibly, but the extent of wealthy individuals leaving the UK due to a wealth tax depends on several factors:
1. Historical Evidence
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Countries like France had a wealth tax, and studies showed that some rich individuals left (notably high-profile cases like Gérard Depardieu), but the actual number was relatively small. France later scrapped the tax in 2017.
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Other countries, like Switzerland and Norway, have retained wealth taxes without a mass exodus of the wealthy.
2. Practical Barriers to Leaving
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Moving abroad is not easy for everyone, especially if they have businesses, property, or family ties in the UK.
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Many countries also have exit taxes, meaning they would still be taxed on their UK-based wealth even if they left.
3. Tax Avoidance vs. Emigration
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Rather than physically leaving, many wealthy people may use legal loopholes, offshore trusts, or restructuring their assets to minimize the tax.
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The UK already has a significant number of non-domiciled residents, meaning many wealthy individuals already arrange their affairs to minimize UK taxation.
4. Effectiveness of Policy Design
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If a wealth tax were well-designed, with strong anti-avoidance measures, the impact of people leaving could be minimized.
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Countries that have wealth taxes tend to set them low (one per cent or less) to prevent large-scale avoidance or migration.
Some wealthy individuals would likely leave or shift their assets, but whether it would be enough to significantly reduce the revenue from a wealth tax is uncertain. If implemented carefully, it could still raise substantial funds without causing a mass exodus.
Some say other countries had a wealth tax and abandoned it because it did not bring in the large amounts that they expected. Is this true?
Yes, it’s true that several countries have introduced and later abandoned wealth taxes due to lower-than-expected revenue, high administrative costs, and avoidance issues. However, some countries still have wealth taxes that generate significant revenue.
Countries That Abandoned Wealth Taxes
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France (1982–2017)
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Revenue: ~€5 billion per year.
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Issues: Wealthy individuals (like Gérard Depardieu) left, and the tax encouraged avoidance strategies rather than real revenue collection.
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Result: Replaced with a narrower property wealth tax.
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Sweden (1947–2007)
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Revenue: 0.2% of GDP (£4 billion in UK terms).
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Issues: Many Swedes moved assets abroad; the tax was seen as discouraging investment.
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Result: Abolished to boost economic growth.
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Germany (1952–1997)
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Netherlands, Denmark, Austria, Ireland, Finland – All scrapped wealth taxes due to administrative costs and avoidance.
Countries That Still Have Wealth Taxes
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Switzerland
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Tax rate: 0.1–1% (varies by canton).
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Revenue: ~1% of GDP (£25 billion in UK terms).
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Success: Works well due to strict enforcement and low rates.
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Norway
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Tax rate: 1.1% on wealth over ~£130,000.
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Revenue: ~1.5% of GDP (£37 billion in UK terms).
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Success: Generates significant revenue, but some rich individuals have moved abroad.
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Spain
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Tax rate: 0.2–3.5% on wealth over ~£600,000.
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Revenue: ~£1.2 billion per year.
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Issues: Some wealthy individuals avoid it by structuring assets differently.
Why Have Some Wealth Taxes Failed?
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Avoidance & Evasion: The rich can shift assets offshore or reclassify wealth.
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High Administration Costs: Valuing assets like businesses, art, and property is complex.
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Capital Flight: Some rich individuals relocate to avoid taxation.
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Low Revenue vs. Expectations: Wealth taxes often bring in less than expected compared to income or corporate taxes.
Would a UK Wealth Tax Work?
It depends on how it’s designed. If the UK set a low rate (one or two per cent), focused on high-net-worth individuals, and closed loopholes, it could generate significant revenue, similar to Switzerland or Norway. However, if poorly designed, it could face the same fate as France or Sweden.
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Wealth taxes: a few pertinent facts
Vox Political needs your help!
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Be among the first to know what’s going on! Here are the ways to manage it:
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Join the Vox Political Facebook page.
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6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
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Buy Vox Political books so we can continue
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The first collection, Strong Words and Hard Times,
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