Select committee: Public Accounts Committee
Conclusion 24
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 ↗
Conclusion (the committee's words)
HMRC reserves criminal investigations for where it needs to send a strong deterrent message or where only a criminal sanction is appropriate.45 HMRC told us that deterrence works primarily through media and social media so focusing on the most severe cases, which will attract the highest penalties, is likely to be the best deterrent. It said that it has looked at whether it can quantify the deterrent effect, but it cannot put a monetary value on the impact of its criminal investigations. It did though stress the importance of the deterrent effect of taking cases to court. We raised concerns that, in some instances, HMRC is not using its existing powers to tackle non-compliance. HMRC said that it uses the powers it thinks are most effective to tackle the problems it faces.46 HMRC subsequently provided information on the total number and value of penalties issued by HMRC in relation to offshore tax evasion or non-compliance. While it acknowledged the vital importance of its use of powers for their deterrent effect, we noted that HMRC has issued no penalties to enablers of tax evasion, despite the role unscrupulous advisers often play in helping the wealthy evade tax.47 Boosting public trust and confidence through transparency
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.