The concept of a UK wealth tax has long been debated but remains unimplemented. Still, expats, returnees, and UK residents alike are often impacted by related taxes that target accumulated wealth in indirect ways. At Harrison Brook, we work with clients to structure their wealth in a way that is both efficient and resilient — regardless of changes in UK tax law. While we do not provide tax advice, we maintain close relationships with specialist advisers and will happily introduce you when needed.
Our role is to ensure your investment strategy, estate planning, and retirement funds are aligned with the wider UK tax landscape — including any future changes that could bring about a formal wealth tax.
Does the UK Have a Wealth Tax?
No, there is currently no formal wealth tax in the UK. However, existing taxes significantly affect high-net-worth individuals:
- Capital Gains Tax (CGT)
- Inheritance Tax (IHT)
- Stamp Duty Land Tax (SDLT)
- Dividend and interest income tax
- Council Tax on property value
These taxes can reduce the growth and transfer of wealth over time. Understanding how they interact with your overall financial picture is key — especially for expats or those holding assets in multiple jurisdictions.
Why Is Wealth Tax Being Discussed?
Recent public discourse has explored the idea of implementing a UK wealth tax — especially as a potential source of public revenue. Proposals have suggested:
- Thresholds (e.g. total assets above £1 million)
- Tax rates of 1–2% annually on net wealth
- Inclusion of pensions, primary homes, and business interests
Although still theoretical, wealthier households may want to plan ahead. A change in government or fiscal pressure could make this a reality.
Planning Ahead Without a Wealth Tax
Even in the absence of a dedicated wealth tax, the accumulation and transfer of wealth can be heavily impacted by the UK’s existing tax system. At Harrison Brook, we help clients:
- Maximise ISA and pension allowances
- Use offshore bonds and trusts for tax deferral or protection
- Minimise IHT exposure using life insurance, gifting, and pension planning
- Split assets between spouses where appropriate to lower exposure
International Wealth Tax Considerations
Clients moving to or from countries such as France, Spain, or Norway may be subject to foreign wealth taxes. When relocating back to the UK, it’s important to:
- Review overseas holdings
- Understand reporting requirements
- Consider domicile and residency implications
- Restructure accounts before arrival if needed
We coordinate with international tax experts to ensure smooth transitions and effective structuring.
How We Help
- Evaluate and structure your overall wealth
- Integrate tax-efficient investment tools
- Anticipate legislative changes affecting your net worth
- Connect you with cross-border tax professionals when needed
FAQs
1. Is there a wealth tax in the UK?
No — but assets are still taxed indirectly through CGT, IHT, and other taxes.
2. Could a wealth tax be introduced in the UK?
Yes. Though no legislation exists yet, it remains under political debate.
3. What types of assets could be taxed under a wealth tax?
Proposals suggest including property, pensions, investments, and business holdings.
4. Do expats need to worry about wealth tax in other countries?
Yes. France, Spain, and others have active wealth taxes. Cross-border planning is essential.
5. How do I prepare for future tax changes?
We help structure your finances tax efficiently and refer you to trusted tax advisers where needed.
