Analysis: Wealth tax 'difficult' and could backfire

Potential wealth tax revenue ‘remains highly uncertain’, experts warn

Sahar Nazir
clock • 8 min read

The UK already has wealth-related taxes, including capital gains tax (CGT), inheritance tax (IHT) and stamp duty. However, the government is facing pressure to introduce an annual tax on the stock of household wealth – also known as a wealth tax.

Late last month (29 July), more than 30 economists from UK and international universities wrote an open letter calling for a wealth tax in the UK. According to the economists, wealth is currently "largely untouched" by taxation – creating a system in which the "richest continue to grow richer, enabled and subsidised by the tax system, public services and financial systems". Pressure has mounted even as reports have suggested that chancellor Rachel Reeves is likely to reject a wealth tax over exodus fears. While some have thrown their backing behind a wealth tax, other experts have ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advisers: Are you even taking your own advice?

Advisers: Are you even taking your own advice?

Exploring the expenditure consolidation conversation

Nick Ryan
clock 25 March 2026 • 4 min read
CISI welcomes 76 Certified financial planners

CISI welcomes 76 Certified financial planners

Number of UK CFP professionals continues to rise

Sophia Panayi
clock 24 March 2026 • 1 min read
'Nobody is big enough not to be bought'

'Nobody is big enough not to be bought'

Roderic Rennison on the future of deals in the advice industry

Isabel Baxter
clock 20 March 2026 • 1 min read