Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
HMRC has not linked internal data with external rich lists to identify wealthy UK taxpayers.
Recommendation
The Sunday Times Rich List 2025 listed 156 billionaires, compared with 165 last year. We asked HMRC if it has ever tried to link the Sunday Times Rich List with its own records to estimate how many billionaires on the list are tax resident in the UK. HMRC told us that it has access to a huge range of internal and external data which it uses to identify wealthy individuals, cross-check across data sources, and target its compliance work as effectively as possible but it would not be drawn on the use of specific data.30 We understand that in the United States, the Inland Revenue Service has worked with researchers to link its data to the Forbes 400 list, their equivalent of the Sunday Times Rich List. We asked HMRC if it would allow academics to do something similar with its data. HMRC agreed 25 C&AG’s Report, para 2.14 26 Qq 120-122 27 Qq 21-22, 25-26, 28-30 28 Q 35 29 Q 120 30 Qq 31-33 12 that, in theory, it would be possible for academics to use its Datalab to securely access its data for research purposes and use other information to do analysis.31
Government Response Summary
HMRC will continue to enhance its understanding of billionaires with a UK tax footprint and provide assurance that all billionaires with a UK tax footprint in the wealthy population have an allocated Customer Compliance Manager (CCM). CCMs are senior tax professionals who provide extra scrutiny of individuals who have complex tax affairs and support customers to get their tax right first time. Customers who are newly allocated a CCM in the next update will be informed by summer 2026. Assurance will be provided to the Committee that this has been completed by autumn 2026. It will also use various data sources to estimate the wealth of individuals and understand who the wealthiest individuals are for UK tax purposes.
Government Response
Accepted
HM Government
Accepted
3. PAC conclusion: HMRC cannot identify how much tax is paid by UK billionaires, despite the relatively small number of individuals and significant sums of money involved. 3a. PAC recommendation: Alongside its Treasury Minute response, HMRC should write to the Committee with its plans for improving its understanding of the wealth and assets held by the wealthiest individuals, including billionaires. This should include: • work it can implement straightaway on comparing available data on known billionaires, such as the Sunday Times Rich List, with its own records; 3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 31 3.2 The First Permanent Secretary of HMRC has written to the Committee setting out the department’s plans alongside this Treasury Minute response. 3.3 HMRC will continue to enhance its understanding of billionaires with a UK tax footprint. HMRC will provide the Committee with assurance that all billionaires with a UK tax footprint that are identified as part of the department’s annual refresh of the wealthy population have an allocated Customer Compliance Manager (CCM). CCMs are senior tax professionals who provide extra scrutiny of individuals who have complex tax affairs and support customers to get their tax right first time. This refresh takes place annually and customers who are newly allocated a CCM in the next update will be informed by summer 2026. HMRC will provide assurance to the Committee that this has been completed by autumn 2026. 3.4 It is not a requirement in UK law for individuals to routinely report on their total level of wealth or assets held. Whilst there are data limitations, HMRC is able to estimate the wealth of individuals and understand who the wealthiest individuals are for UK tax purposes. To do this HMRC uses a range of data sources, including but not limited to self-assessment returns, data received from overseas tax jurisdictions under automatic exchange of information, third party data and open-source data, including the Sunday Times Rich List.