Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
Vast wealth disparities exist within HMRC's wealthy customer group, requiring improved understanding of billionaires.
Recommendation
The NAO’s report illustrates the vast difference in levels of wealth in HMRC’s wealthy customer group. For example, a billionaire could have 100 times more wealth than someone who fits the descriptor of a “high net worth individual”, and 500 times more wealth than someone who just meets HMRC’s definition of a wealthy individual. In 2023, HMRC secured £652 million in unpaid tax, interest and penalties from one case alone, involving a billionaire who failed to declare offshore trusts.32 HMRC told us that it wants to improve trust in the UK tax system and sees transparency about the amount of tax that wealthy taxpayers pay as one way for it to achieve this aim. It committed to look at opportunities to do more, including providing reassurance that it sufficiently understands the billionaires within its wealthy population.33 31 Q 34 32 C&AG’s Report, Figure 5, para 3.16 33 Q 38 13 2 Improving compliance and enforcement activity Targeting interventions
Government Response Summary
HMRC will undertake further analysis to enhance its understanding of how different levels of wealth and complexity impact risk in the wealthy population, with target implementation in Autumn 2026.
Government Response
Accepted
HM Government
Accepted
2. PAC conclusion: Even among the wealthy population there are vast disparities in wealth and circumstance, making it likely that more tax is at risk for the wealthiest taxpayers. 2a. PAC recommendation: As part of its plan for increasing yield from wealthy taxpayers domestically and offshore, HMRC should review whether segmenting its wealthy customer group according to different levels of wealth and complexity would help it to assess and then target the most significant risks. 2.1 The government agrees with the Committee’s recommendation. Target Implementation date: Autumn 2026 2.2 The government notes the Committee’s conclusion. HMRC currently segments the wealthy population using a range of risk factors including estimated wealth and complexity. 2.3 HMRC will undertake further analysis to enhance its understanding of how different levels of wealth and complexity impact risk in this population and so improve its identification and targeting of risk.