Sixty of the UKs richest people collectively paid more than £3billion a year in income tax, it emerged today - providing fresh evidence of the countrys reliance on its wealthiest citizens amid a feared exodus of millionaires.
The total tax paid by the cohort is roughly equivalent to two-thirds of the extra spending Labour has committed to in its manifesto - just as the party prepares to clobber Britains wealth creators with tax rises.
There are fears increased day-to-day taxation, frozen inheritance tax thresholds, a potential increase in capital gains taxes and the abolition of the non-dom regime will hurt the nations finances by prompting its biggest taxpayers to flee.
Each of the 60 individuals who paid the most income tax had an income of at least £50million in 2021/22, the BBC found through a freedom of information request to HMRC. They are likely to have paid a large amount in other taxes too.
As Rachel Reeves readies for her first Budget this month, the Institute for Fiscal Studies has said the Treasury had to to be aware that a small number of this ultra-wealthy group leaving the country would create a relatively big hole in its finances.
This graphic shows some of the UKs largest overall taxpayers including all forms of tax, not just income tax
Charlie Mullins - seen with Lizzie Cundy at an awards ceremony in London last month - has threatened to leave the UK over tax rises
Stuart Adam, a senior economist, said it would not require a significant exodus of the wealthy to hurt the public finances as tax payments are very concentrated on a small number of people.
It follows warnings by an economics think-tank that Britain is set to lose a fifth of its millionaires under this Labour government due to tax rises.
Tax raids means that the 4.55 per cent of British residents with over $1million in assets will fall to just 3.62 per cent by 2028, according to the Adam Smith Institute (ASI).
Pimlico Plumbers founder Charlie Mullins is one of the most high profile figures to announce plans to leave the UK, with the entrepreneur saying he will sell his £12m penthouse and leave the country to avoid a Labour tax raid on his £145m fortune.
Labour has vowed not to rise income tax in the Budget, but it has not ruled out hikes to the likes of capital gains tax - which is levied on the profits from the sale of assets.
Ms Reeves controversially claims to have inherited a £22billion black hole in the public finances, and today a Treasury spokesman said it was addressing unfairness in the tax system in order to raise revenue to rebuild public services.
Fears of a flight of the super-rich from the UK has led to analysts at the Centre for the Analysis of Taxation (CenTax) to call for the introduction of an exit fee for those leaving abroad.
The think-tank argued that the lack of a capital gains charge for fleeing businesspeople provided an incentive for the wealthy to move abroad in order to cut their tax bill.
Currently the UK does not charge CGT on rich entrepreneurs and investors who leave the country for more than five years.
As a result, three-quarters of leavers move to countries where they can sell their firms or investments without paying any tax on their gains, a report found.
CenTax argued that the UKs lack of a CGT charge for wealthy leavers made it an international outlier and suggested a charge could raise £500m.
Arun Advani, director of CenTax and Associate Professor at University of Warwick, said: If politicians are worried about emigration, they could follow Australia, Canada and many other countries by taxing the gains of people who leave.
Its a policy choice to let them emigrate tax free.
Labour Chancellor Rachel Reeves is feared to be gearing up for tax rises at her Budget this month
Andy Summers, director of CenTax and Associate Professor at the London School of Economics (LSE), said: Charging CGT on people who leave the UK is not about punishing them for leaving. Its simply saying: you need to pay your bill on the way out.
Most of the UKs international peers already do this, and there is no reason why the UK couldnt as well.
However, Nigel Green of financial advisory firm deVere Group argued calls for an exit tax were fundamentally flawed .
The proponents of the exit tax are missing the point, he said. At a time when economic growth needs a boost, and international competition for talent and capital is at an all-time high, this tax would do more harm than good.
The problem that academics and policy advocates fail to acknowledge is that policies like this discourage people from coming to the UK in the first place.
Worse still, it sends a negative message to the global investment community that the UK is hostile to wealth creators and innovators. Its, therefore, fundamentally flawed.
The UK is only one of three major nations set to reduce in individual millionaires over the next few years, along with the Netherlands and Saudi Arabia. Others - such as Taiwan, Japan and South Korea - will see their own numbers rise by a third or more.
The ASIs Millionaire Tracker suggests that the UK is set to lose 9,500 liquid millionaires - wealthy individuals who hold over $1million in cash or investable assets - in 2024, meaning the UKs total number will fall to 593,000. This is far below the figure in 2007, when the UK had 708,500 liquid millionaire residents.
Former chancellor Nadhim Zahawi said: The rate at which millionaires are leaving the UK is a vote of no confidence in both our current tax and regulatory regime, and anti-business and anti-prosperity measures that could be coming down the line.
These individuals are often entrepreneurs and business owners. Their exit wont just reduce necessary funds for public services- it will decrease investment in the wider economy too.
I urge the Government to rule out anything in the Autumn Budget on October 30, that could drive them away even more.
They should instead be focusing on attracting more millionaires from across the world to make a home and set up shop in Britain. Abandoning anti-non-dom policies and abolishing or cutting anti-wealth taxes would be a vital first step.
Chad West, a 33-year-old tech executive who previously worked for Revolut and is now vice president at another fintech, recently told MailOnline he is actively considering moving abroad
It comes as a survey seen by the Daily Mail reveals that 24 per cent of taxpayers plan to move their residency abroad due to fears about this months budget.
Polling from Cornerstone Tax and Yonder also shows that a third of Brits say changes in taxation are the main reason why they would leave the UK.
A fifth plan to migrate in the near future due to proposed tax hikes, while 16 per cent agree that the deciding factor influencing their decision to leave is the Autumn Budget.
Chad West, a 33-year-old tech executive who previously worked for Revolut and is now vice president at another fintech, recently told MailOnline he is actively considering moving abroad.
I think most execs in the tech industry are planning ahead for fear of the worst, said the Scotsman, who lives in London.
Many of us are already fed up with effectively paying 60% income tax rates (as we are taxed at 45% and lose our tax free allowance as well), and now the fear of capital gains tax increasing from 20% will send everyone packing.
I had my house valued last week and Im chatting to my accountant the next. Im already looking at more favourable tax systems and quality of life in Europe, starting with Italy.
Capital gains tax increasing would be the most damaging. It will seriously harm Londons ranking as Europes tech capital. Most tech companies allow remote work, so youll see a huge amount leave for tax and quality of life reasons.
Meanwhile, advisers to the UKs richest households have told how their phones are ringing off the hook as their clients rush for the exit.
In a stark warning they said that high-net-worth families are packing their bags in a bid to protect their hard-earned assets – and some have already made the move.
Sir Keir Starmers gloomy warnings about a painful budget have been blamed for putting off rich people from investing in Britain
One tax adviser, who asked to remain anonymous, said: I almost feel like I should contribute to the Labour Party because of what theyve done for our business.
He added: People will pay over the odds to live in their native country, but even the most loyal Brit will abandon ship if the environment becomes too hostile.
The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024, according to consultants Henley & Partners.
Tax and citizenship advisers to some of the UKs wealthiest families have seen a sharp increase in enquiries about moving abroad, to lower tax regimes, since Labour won the election.
Favourite destinations include Italy, Dubai and Ireland.
Peter Ferrigno, director of tax services at citizenship advisory firm Henley and Partners, told after the election how his firm had gone from receiving very few queries before the election to several a week since.
Judging by how busy we are, it is a concern for absolutely everyone, Mr Ferrigno said. It is the difference between having enough money to retire or not having enough money to retire. [Clients feel it is] forcing their hand.
He added that an increase in Capital Gains Tax would be the last straw... people who were prepared to pay 20 per cent are now considering leaving. It is desperately, desperately sad, he said.
David Lesperance, the founder of tax and immigration advisory Lesperance and Partners, said enquiries about leaving the country doubled when it became clear that Labour would win the election in July.
Ever since Rachel Reeves started talking about a fiscal black hole, my wealthy UK non-dom and domiciled clients have been looking anxiously at the exit door, he said.
Sir Keirs warnings about a painful budget just reaffirms their concerns that major IHT and capital gains hits will be coming soon.
Mr Lesperance added: The UKs richest families are getting out while the getting is good.
You dont wait until the fireman confirms your house is on fire before fleeing. Similarly, UK high net wealth individuals are not waiting for the Autumn budget to confirm that their fiscal house is about to be engulfed.
Jason Porter, of Blevins Franks, a financial advice firm specialising in cross-border wealth management, said the fear was now palpable among millionaires, with growing numbers planning to relocate to shield their pension, property and investment assets.
Mr Porter said he had received an influx of calls from wealthy families planning to relocate outside of the UK ahead of the autumn Budget. He said: Families with large pensions or investments in shares are feeling under threat and interest in moving abroad is ramping up every month.
There were certainly a lot of people coming to us with big concerns over changes to capital gains tax, pension rules and inheritance tax, who are worried about what their situation could soon be like if they stayed.
In most cases they were people in the middle bracket of wealth, with a couple of million pounds, for whom it can take time to move their assets.
Are you a millionaire planning to leave the UK? Email rory.tingle@mailonline.co.uk