call us
Glasgow
+44 (0)141 221 2984
Edinburgh
+44 (0)131 225 6366
Stirling
+44 (0)1786 451745
Dumbarton
+44 (0)1389 765238
Hamilton
+44 (0)1698 459444
Glasgow
+44 (0)141 221 2984

Edinburgh
+44 (0)131 225 6366

Stirling
+44 (0)1786 451745

Dumbarton
+44 (0)1389 765238

Hamilton
+44 (0)1698 459444

French Duncan

Should millionaires be forced to publish tax details?

13 March 2017

McDonnell said the move would help curb tax avoidance and contribute to improved trust between the elites and the rest of society. He expressed hope that more transparency would encourage a more open and civic culture. Tackling tax avoidance would be a positive step towards funding public services more generously, he thinks.

The new rule would be based on taxpayers’ income, not their wealth. This means that homeowners whose property is worth more than £1 million would not be affected. The Guardian has highlighted figures from HM Revenue & Customs which suggest that there are approximately 16,000 people in Britain who earn more than £1 million a year. Moreover, about 5,000 earn more than £2 million a year.

There is currently limited publicly available information about the country’s wealthy, and even the leading authorities on tax and spending in the UK, such as the Institute for Fiscal Studies and the Resolution Foundation, complain that HMRC has failed to provide statistics for millionaires’ incomes.

In the current political environment, Mr McDonnell’s plan may seem unlikely to come to fruition. But the calls for increased scrutiny of high earners is another reminder that professional and transparent tax planning is essential.

If you would like to talk to us about tax planning, please click here to get in touch or call 0141 221 2984.