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Unseen entities remain tax-exempt

Focusing tax reforms on excessive wealth instead of pressuring worker's wages for balance

, and Administrator

2025 September 8 . 3:34 PM

2 min read

Unseen entities escape the taxman's grip

Unseen entities remain tax-exempt

The UK is facing a growing issue of extreme wealth inequality, with the top 1% holding more wealth than the bottom 70% combined, yet there is no complete record of who owns what. This imbalance is not just an economic concern; it destabilizes democracy, distorts markets, blocks climate action, and drives the exploitation of people and nature.

The tax system, as a powerful lever, can play a crucial role in fixing a broken economy that breeds resentment and fuels a politics of hate. However, the UK government's capacity to know where private wealth is hidden needs to be restored and further built. A proposed taxing wealth programme includes modern asset registries, a high-net-worth-individuals' unit within HMRC, and enforcement powers.

One solution to address this issue is reforming business rates and council tax to make them fairer and more responsive to local needs. This could help alleviate the burden on essential workers, who are at risk of burnout, pay erosion, and cost pressures, rather than the real risk of wealthy individuals leaving the country.

Another solution is equalising capital gains tax rates with tax rates on income. This move could raise an additional £14bn in total revenues, providing resources for climate resilience, public services, and community assets.

A frequent flyer levy could also be implemented, raising up to £5bn annually while reducing emissions and protecting low-income households. Moreover, making windfall taxes on oil and gas giants permanent could reflect ongoing excess profits.

The proposed taxing wealth programme also includes reforming rules and greater fiscal-monetary policy coordination. The UK public, including the super-rich, supports greater taxes on wealth, indicating a collective understanding of the need for change.

The UK has the tools to tax extreme wealth, but what's missing is political leadership to use them. As the UK faces issues such as a lack of clarity about the super-rich and their wealth, and the need for transformational changes to its economic policy, it is urgent that this leadership emerges.

In conclusion, addressing extreme wealth inequality is not just a matter of economic fairness, but also a matter of democratic stability, climate action, and social justice. The question is who will lead in investing in the capacity of institutions to know and fairly tax where collective wealth hides.