Select committee: Public Accounts Committee
Recommendation 23
40th Report - Collecting the right tax from wealthy individuals
Published 16 Jul 2025
Addressed to HM Treasury
Public Accounts Committee Collecting the right tax from wealthy individuals All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
HMRC has issued fewer penalties to wealthy taxpayers in recent years, and criminal prosecutions of wealthy individuals have also declined. In 2023–24, HMRC issued 456 penalties to wealthy individuals, totalling 37 Qq 20, 87-88, 90 38 Q 105 39 C&AG’s Report, para 3.18 40 C&AG’s Report, paras 17, 3.20 41 Q 96-97 42 Q 98-100 43 Q 90 15 £5.8 million. This is down from 1,747 penalties totalling £20.5 million in 2022–23, and 2,153 penalties totalling £16.2 million in 2018–19. HMRC explained that the number and value of penalties will vary depending on its caseload. For example, it charges automatic penalties for late filing, but other sorts of mistakes may not result in penalty charges. The number of wealthy individuals prosecuted following HMRC’s criminal investigations reduced significantly from 30 in 2019–20 to five in 2021–22 but has since increased to 25 in 2023–24. HMRC said it is expecting a 20% increase by 2029–30 in decisions to charge taxpayers with a criminal offence.44 In the wealthy individuals customer group, we presume this translates into five more taxpayers charged in 2029–30 than currently.
From: Public Accounts Committee, 40th Report - Collecting the right tax from wealthy individuals (HC 827), 16 July 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Fortieth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 16 September 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Fourtieth report from Session 2024-26
Published 15 October 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it agrees with the Committee's recommendations, setting mostly Autumn 2026 target dates, while declining one specific proposal on penalty targets.
- On the plan to increase yield from wealthy taxpayers, the government agrees and HMRC "will publish its plan in spring 2026" with timelines and outcomes for each objective.
- On data about billionaires and wealth, the government agrees. HMRC will provide the Committee with assurance by autumn 2026 that identified billionaires with a UK tax footprint have an allocated Customer Compliance Manager.
- On penalties for enablers of tax evasion, the government agrees to the recommendation but HMRC "is not minded to set an annual target", because issuing penalties "is dependent on the behaviours shown by taxpayers and enablers in each specific case".
- On the wealthy tax gap, the government agrees, and HMRC "will write to the Committee in Autumn 2026" updating on progress in improving the estimate.