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.

1. Historical Evidence

• 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.

• Other countries, like Switzerland and Norway, have retained wealth taxes without a mass exodus of the wealthy.

2. Practical Barriers to Leaving

• Moving abroad is not easy for everyone, especially if they have businesses, property, or family ties in the UK.

• 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

• Rather than physically leaving, many wealthy people may use legal loopholes, offshore trusts, or restructuring their assets to minimize the tax.

• 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

• If a wealth tax were well-designed, with strong anti-avoidance measures, the impact of people leaving could be minimized.

• 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.

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

1. 1. France (1982–2017)

      • Revenue: ~€5 billion per year.

      • Issues: Wealthy individuals (like Gérard Depardieu) left, and the tax encouraged avoidance strategies rather than real revenue collection.

      • Result: Replaced with a narrower property wealth tax.

   2. Sweden (1947–2007)

      • Revenue: 0.2% of GDP (£4 billion in UK terms).

      • Issues: Many Swedes moved assets abroad; the tax was seen as discouraging investment.

      • Result: Abolished to boost economic growth.

   3. Germany (1952–1997)

      • Issues: Ruled unconstitutional because of unfair valuation methods.

      • Result: Never reintroduced due to concerns over competitiveness.

   4. Netherlands, Denmark, Austria, Ireland, Finland – All scrapped wealth taxes due to administrative costs and avoidance.

Countries That Still Have Wealth Taxes

1. Switzerland

   • Tax rate: 0.1–1% (varies by canton).

   • Revenue: ~1% of GDP (£25 billion in UK terms).

   • Success: Works well due to strict enforcement and low rates.

2. Norway

   • Tax rate: 1.1% on wealth over ~£130,000.

   • Revenue: ~1.5% of GDP (£37 billion in UK terms).

   • Success: Generates significant revenue, but some rich individuals have moved abroad.

3. Spain

   • Tax rate: 0.2–3.5% on wealth over ~£600,000.

   • Revenue: ~£1.2 billion per year.

   • Issues: Some wealthy individuals avoid it by structuring assets differently.

Why Have Some Wealth Taxes Failed?

• Avoidance & Evasion: The rich can shift assets offshore or reclassify wealth.

• High Administration Costs: Valuing assets like businesses, art, and property is complex.

• Capital Flight: Some rich individuals relocate to avoid taxation.

• 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.

Now you’re as well-informed as This Writer – and better-informed than some of the clowns you see on TV.