Wealth Tax Calculator

No, the UK does not currently have an annual wealth tax. However, it has been discussed by multiple think tanks and political parties. The LSE Wealth Commission proposed a one-off wealth tax in 2020. Labour and other parties have considered annual wealth taxes. This calculator models hypothetical scenarios to help you understand potential impacts.

A wealth tax would be levied on the total net assets of individuals (assets minus debts) above a threshold. Assets include: property, investments, savings, pensions, businesses, and valuables. Debts (mortgages, loans) would be deducted. Tax would be paid annually based on asset values at a specific date. Administration would require annual wealth declarations.

Proponents argue: wealth inequality has increased significantly (the top 1% own 21% of UK wealth), it raises significant revenue (1% above £500k raises ~£260bn one-off), it addresses the fact that income from wealth is taxed less than income from work, and it could fund public services or reduce income taxes for lower earners.

Opponents argue: valuation difficulties (how to value private businesses, pensions, art), liquidity problems (asset-rich cash-poor individuals may need to sell assets to pay), risk of capital flight, administrative complexity and cost, discouragement of saving and investment, and that the UK already taxes wealth through IHT, CGT, stamp duty, and council tax.

As of 2026, countries with annual wealth taxes include: Norway (0.95%), Spain (0.2-3.5%), Switzerland (varies by canton, 0.1-1%), and Colombia. France abolished its wealth tax in 2018, replacing it with a property-only tax. Sweden abolished theirs in 2007. The trend has been away from wealth taxes due to administrative costs and capital flight concerns.