From Fortune to Fairness: The Case for a Wealth Tax

The wealth tax debate is no longer just a technical issue for tax lawyers or policy makers.

It reflects wider questions about how wealth is made, kept, and taxed—and whether the richest are contributing fairly.

For advisers the question is whether careful planning is still enough as public and media scrutiny of the wealthy increases. 

To answer that question, we need to consider two key issues:

1. Fiscal balance
   Governments need enough tax income to fund public services without excessive debt. Fair taxation helps share the burden and keep the system stable, especially in tough times.
2. Contribution to society
   Those with greater wealth should pay more in taxes, as profit for the few often comes at a cost to the many. They are best placed to support the common good. This also raises fair questions about how wealth is made, preserved, and taxed.
   

Why Wealth Tax It’s Gaining Ground

Tax Justice UK proposes a 2% annual tax on net assets over £10 million. This measure would affect around 20,000 individuals and could raise up to £24 billion a year—funds urgently needed for the NHS, education, housing, and social care. Oxfam supports the proposal and reports that 78% of the British public would back such a measure.

In the UK, over half of billionaires have made their fortunes through property, inheritance, and finance—sectors where rent extraction often outpaces productive innovation. A modest wealth tax could act as a corrective, without discouraging genuine entrepreneurship.

New Generations, New Expectations

A generational shift is under way. Many younger high-net-worth individuals and inheritors are calling for structural reform. Groups such as Patriotic Millionaires UK, co-founded by entrepreneur Gemma McGough, actively campaign for wealth taxes, arguing that extreme accumulation must come with proportionate responsibility.

This aligns with global trends. In early 2024, more than 250 billionaires signed an open letter urging world leaders to implement wealth taxes, including high-profile philanthropists such as Bill Gates. Their argument is simple: the tax system should not allow extreme inequality to flourish unchecked.

Philanthropy and the Public Interest

There is also growing awareness of the limits of private philanthropy. Voluntary giving, however generous, is not a substitute for fair taxation. The Intergenerational Foundation has published reports showing how a wealth tax could redress structural imbalances affecting younger people—particularly in housing and environmental policy.

Recent examples, such as Austrian heiress Marlene Engelhorn’s decision to distribute €25 million through a citizens’ panel, and David Clarke’s donation of his inheritance to a deliberative group in Liverpool, illustrate how younger generations are rethinking wealth and power.

Real Concerns

The implementation challenges are real. Valuation of illiquid assets, liquidity constraints, and the risk of capital flight must be addressed with care.

A well-crafted policy must include thresholds, exemptions for business assets, and international coordination to minimise avoidance.

A badly designed wealth tax risks being inefficient and politically damaging. But done well, it could restore public confidence in the tax system and reduce reliance on income and consumption taxes that disproportionately affect those on lower and middle incomes.

A Role for Advisers

Tax professionals must move beyond a reactive stance. The question is no longer whether such reforms will be proposed, but how we respond when they are.

We have the expertise to shape a fair, administrable model that preserves legitimate business structures while ensuring that the burden of rebuilding is more fairly shared.

If we do not engage in shaping the future of wealth taxation, others will do it for us—perhaps without the benefit of our insight or experience.