UK’s Richest Use Tax Havens to Funnel Up Wealth

March 15, 2016 Taxation in UK

British Virgin IslandsLONDON – By using tax havens to hide their wealth and dodge taxes, the richest people in the UK have managed to grow their wealth by GBP 3.7 million each since the year 2000.

Over the last 15 years the wealthiest people in the UK have used tax havens to help collect more than a quarter of all wealth generated in the country, according to information in a new report published on March 14th by the international non-government organization Oxfam.

In the report Oxfam estimated that in 2000 the total net wealth of people in the UK was approximately GBP 6 trillion, and over the course of the next 15 years the level grew to approximately GBP 10 trillion.

An estimated 26 percent of the wealth increase was enjoyed by the 600 000 people who comprise the richest 1 percent of people in the country, while the poorest 50 percent of people saw their wealth rise by only 7 percent.

The wealth increase felt by the wealthy was equivalent to a rise of approximately GBP 3.7 million each, while in comparison the poorest 10 percent saw their wealth rise by only GBP 500.

Oxfam claimed that the extraordinary wealth increase enjoyed by the richest people could be partially attributed to their use of tax havens to hide their assets and to dodge their UK tax obligations.

The report went on to say that the richest people in the UK are holding an estimated GBP 170 billion in tax havens, and are collectively dodging GBP 5 billion in UK taxes each year.

Photo by lgarfinkle