Taxing Wealth roundtable: 11 November 2025

• Chair: Cabinet Secretary for Finance and Welsh Language
• Gerry Holtham – Wales Centre for Public Policy and Fellow, Institute of Welsh Affairs
• Stuart Adam – Institute for Fiscal Studies
• Guto Ifan – Cardiff University, Wales Governance Centre
• Mairi Spowage – Fraser of Allander Institute
• Rhys Ap Gwilym - Bangor University
• Arun Advani – CenTax, University of Warwick
• John Barnett – Chartered Institute of Taxation
• Caitlin Boswell – Tax Justice UK
• Suzanne Bold – Patriotic Millionaires
• Jane Hutt MS– Cabinet Secretary for Social Justice, Trefnydd and Chief Whip
• Jane Dodds MS – Leader, Welsh Liberal Democrats

To discuss taxes on assets and wealth, including:

• the case for increasing taxation of assets and wealth
• potential new taxes on assets and wealth
• practical issues around taxation of assets and wealth, and
• how revenues generated could be best used.

The concentration of wealth in the UK is stark. According to the Equality Trust, the UK’s richest 50 families have more wealth than 50% of the population. This raises questions about fairness and sustainability.

The UK remains one of the richest countries in the world, yet in the 6 months to May 2025, the Joseph Rowntree Foundation reported that 7.1 million low-income households - 60% of all low-income households in the UK - were going without essentials.

Need to fund additional investment in public services.

A lot of focus on the UK tax system in the run up to the UK government Budget on 26 November.

Opportunities to make the current tax system fairer through greater progressivity. Examples include equalising Capital Gains Tax rates with Income Tax; revaluing Council Tax in England as has already been done in Wales.

Greater profile given to advocating for an annual wealth tax on assets over £10 million at 2% per annum. The 2020 Wealth Tax Commission previously recommended a one-off wealth tax post-COVID to raise substantial revenues.

Principles of wealth taxation

Importance of being clear on the purpose and intent. Need to consider the arguments and implications of different approaches for example should/could focus on consumptive wealth versus productive wealth. Taxing productive wealth greater association with changing behaviour (e.g. example of impact of IHT on land reform). Arguments around consumptive wealth more aligned to property and inherited wealth.

Practical challenges

Challenges include defining what constitutes “wealth” and how you value it. Private businesses and complex assets pose particular difficulties, such as valuing individual’s worth to a company and their future earning potential.

Banding (similar to council tax) would help to simplify implementation. Timing of valuation is then important.

Setting the tax base. Importance of this being a UK issue given the small tax base in Wales. Even at UK level, the tax base for a wealth tax is relatively small (estimate 20,000 taxpayers) making revenue forecasts uncertain.

Considering the behavioural impacts. Evidence on the impact of Scotland’s income tax changes suggests high earners adjust behaviour to earn less rather than relocate, but wealth-based taxes may trigger different responses.

Wealth Commission highlighted when designing a wealth tax, the importance of avoiding exemptions at the outset to limit the risk of behavioural change.

Alternative approaches

Reforming council tax as already done in Wales and capital gains tax seen as quicker, more practical steps.

Progressive property taxation is considered easier to measure and implement however not capturing a significant element of the wealth capacity.

Estimated 22,000 individuals would be affected by a UK-wide wealth tax.

Strong arguments for reducing inequality and modernising the tax system.

Importance of clear communication on how revenues will be used. Some form of limited “soft” hypothecation seen as critical for public support.

Declassification of ONS Wealth and Assets Survey as a National Statistic, limits understanding of wealth distribution. Focusing on property wealth would make the data considerations easier.

Recognition of the strong and growing support for addressing wealth inequality but also the significant practical and political challenges in implementing a wealth tax.

Recognition of the importance of an open debate now about the introduction of some form of annual wealth tax.

Welsh Government to continue to progress progressive reforms within devolved powers, such as in relation to Council tax.

Importance of the Senedd taking the opportunity to feed the view from Wales into the debate at the UK-level on taxing wealth.