Exact amount needed to be classed as 'wealthy' revealed as HMRC doubles tax haul under Rachel Reeves's crackdown on the rich

The sharp rise in recovered tax follows pressure from Reeves, who has reportedly set "very hard targets" for HMRC to boost revenues from high earners .

Under her leadership, the Wealthy and Mid‑Size Business Compliance (WMBC) unit, tasked with auditing high-net-worth individuals, doubled its haul, recovering over £1.5 billion in 2023–24, compared with £713 million the previous year.

One standout recovery came from a £652 million settlement with former F1 chief Bernie Ecclestone, though even excluding that, the WMBC still collected £848 million in the year, a significant increase on the prior total, according to Nimesh Shah, chief executive of advisory firm Blick Rothenberg.

The gains largely stem from HMRC's use of advanced data analytics, including Connect software, which cross-references tax returns, property, banking, and travel data, making most tax inquiries into the wealthy data-led rather than random.

Wealthy people, defined by HMRC as those who either earn more than £200,000 a year or with assets of more than £2 million, paid £119 billion in personal taxes in 2023-24, an average of £140,000 per person. The sum represented 25 per cent of the UK’s personal tax receipts.

Ian Robotham, legal director at Pinsent Masons said: "HMRC have been set some very hard targets for extra tax collection by the chancellor. It is hard to see how they can achieve those targets without a sharp rise into tax investigations into the wealthy."

The National Audit Office reported last month that total collections from wealthy taxpayers across all HMRC departments reached £5.2 billion in 2023-24, up from £4 billion the previous year.

The report also suggested that tax lost to evasion and avoidance by wealthy individuals could be higher than previously estimated.

Shah: "I know from experience over the past five years, that there has been a focus from HMRC on wealthy individuals, as there is a perception and understanding that there is tax risk within the wealthier population."

Tax specialists attribute the surge in collections partly to HMRC's investment in artificial intelligence and advanced data analysis capabilities.

The department's Connect software system cross-references business and personal tax records with multiple databases to identify fraudulent or undisclosed activity, according to Robotham.

While HMRC keeps its data sources confidential, they are believed to include bank interest details, credit card information, Land Registry reports and travel records.

"People do still underestimate the sophisticated data mining that HMRC does," said Dawn Register, tax dispute resolution partner at accountancy firm BDO.

"Most inquiries are data led, they're not random. HMRC is often checking for technical errors and the wealthier the individual they find an error for, the more tax yield they're going to get."

Register noted she regularly observes HMRC conducting detailed investigations into clients' offshore assets and tax residency status.

Tax experts anticipate HMRC will maintain its focus on wealthy individuals, particularly following the government's announcement of additional funding for compliance staff to address wealthy and offshore tax risks in the Spring Statement and Autumn Budget.

Register said she was witnessing extensive "detailed cross-referencing" of clients' tax affairs by HMRC, reflecting the department's increasingly sophisticated approach to identifying discrepancies.

HMRC defended its enforcement activities, stating: "It's our duty to ensure everyone pays the right tax under the law, regardless of wealth or status.

The Government is delivering the most ambitious ever package to close the tax gap and bring in an extra £7.5bn for public services per year by 2029-30."

The department's intensified scrutiny of wealthy taxpayers forms part of broader efforts to reduce tax evasion and avoidance across the UK.