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Home Publications The UK's wealth distribution and characteristics of high-wealth households

The UK's wealth distribution and characteristics of high-wealth households

Arun Advani, George Bangham and Jack Leslie
Journal article | Fiscal Studies Special Issue on a Wealth Tax: Time for Another Look?

We show that wealth inequality in the UK is high and has increased slightly over the past decade as financial asset prices have increased in the wake of the financial crisis. But data deficiencies are a major barrier in understanding the true distribution, composition and size of household wealth. The most comprehensive survey of household wealth in the UK does a good job of capturing the vast majority of the wealth distribution, but nearly £800 billion of wealth held by the very wealthiest UK households is missing. We also find tentative evidence that survey measures of high-wealth families undervalue their assets – our central estimate of the true value of wealth held by households in the UK is 5 per cent higher than the survey data suggest.

More on this topic

IFS Working Paper W21/49
We use newly linked tax records to show that the large responses of UK company owner-managers to personal taxes are due to intertemporal income shifting and not to reductions in real business activity.
Journal article | Fiscal Studies Special Issue on a Wealth Tax: Time for Another Look?
This paper is concerned primarily with the question of who should pay a wealth tax and in what circumstances, if such a tax is to be levied.
Journal article | Fiscal Studies Special Issue on a Wealth Tax: Time for Another Look?
This article asks when a wealth tax would in principle be a desirable part of the tax system, setting aside the practicalities and politics that would be crucial in reality.