Source · Select Committees · Public Accounts Committee
Recommendation 26
26
HMRC published new estimates for wealthy and offshore tax gaps, totalling £300 million.
Conclusion
HMRC is one of few tax administrations that publishes an annual estimate of the amount of tax revenue lost to wealthy individuals. It estimated this wealthy tax gap to be £1.9 billion in 2022–23, or 0.2% of all taxes owed. It uses its estimates as an indicator of its long-term performance and to provide insight into where to focus its compliance activity. In October 2024 HMRC published its first estimate of the amount of undeclared tax from income held in offshore accounts, a form of offshore non-compliance. HMRC estimated that, in 2018–19, £300 million in tax was lost due to UK residents failing to disclose their foreign income from some accounts held in the countries which automatically exchanged account information with the UK in 2017 and 2018.49