Tax contributions paid by wealthy individuals in the UK have increased by 39.8 per cent over the past four years, analysis from Astons has revealed.

The residency and citizenship solutions provider noted that the increased tax payments coupled with changes to non-dom tax rules in the UK illustrated why so many high net worth individuals (HNWI) were choosing to leave the country.

Astons’ analysis of HMRC receipt data highlighted that wealthy individuals, defined by HMRC as those earning more than £200,000 a year or with assets over £2m, paid £190bn in tax in 2023/24.

This was an increase of 3.7 per cent year-on-year and of 39.8 per cent over the past four years.

A total of £69.6bn of this tax came in through PAYE income tax, while £32.9bn was paid through self-assessment income tax, with both marking a four-year increase of more than 61 per cent.

A further £9.5bn was brought in through capital gains tax, £3.8bn via inheritance tax, and £2.9bn through stamp duty.

Astons stated that further data suggested that it was not only the loss of income tax receipts that would demand the UK economy, but that there was a “huge blow” to the UK business economy too when so many HNWIs decide to leave.

The firm pointed to the fact that HNWIs accounted for 88 per cent of all self-assessment income tax receipts collected by HMRC in 2023/24 as evidence as how much they contribute to the self-employed and business-owning demographic of the UK.

“The huge increase in tax being taken from the UK’s wealthy population over the past few years goes a long way towards explaining why so many are choosing to leave,” commented Astons citizenship, residence permit, and real estate investment expert, Alena Lesina.

“There are countries around the world that take a far more supportive and encouraging stance towards wealth creation, recognising the value that HNWIs bring through job creation, business investment, and wider economic contribution.

“As a result, these nations often offer far more attractive tax regimes than the UK, with some actively encouraging relocation through Residency by Investment programmes - also known as Golden Visas - which grant full residency rights in exchange for financial investment into the local economy.”

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