Why a wealth tax looks unlikely and what might happen instead
7 October 2025
A wealth tax would be cumbersome and inconvenient to deal with, for both taxpayers and taxman. It could also cost the economy. For these reasons, we think Rachel Reeves, the Chancellor, is more likely to announce other taxes on Budget day.

Article last updated 8 October 2025.
In a new report, we explore why:
- A regular tax on the assets of wealthy people might make them shift into assets that are harder to tax, and less useful in sustaining GDP
- This type of tax might make wealthy people leave the country altogether
- Wealthy people might see higher taxes on high-valued property as much greater than the risk of a comprehensive new wealth tax