Tax system ‘not fit for purpose’, says think tank, as UK’s wealthiest pay less tax
Eight of the UK’s 10 wealthiest people and families were absent from a list of top taxpayers
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The UK's tax system is "no longer fit for purpose", according to a leading think tank, after a report revealed that many of the country's richest people are not among the largest taxpayers.
Figures from the Sunday Times Tax List show that Bet365 boss Denise Coates paid the most tax of any individual for the second year running.
The Coates family, whose collective wealth is £7.2bn, had a tax bill of £573m last year according to the research.
Several of the UK’s wealthiest people were missing from the top 10, including chemicals magnate Sir Jim Ratcliffe, who moved his tax residence to Monaco last year. Also missing were high-profile Conservative Party donors David and Simon Reuben and the Duke of Westminster.
Glenn Gordon and family, who are behind the William Grant spirits firm, were the second-highest taxpayers second with a £436.4m liability.
Also in the top 10 were vaccuum cleaner and hand dryer inventor Sir James Dyson who paid £115m.
Fred and Peter Done, the brothers behind bookmakers Betfred, came in third with a tax bill of £191.3m.
Harry Potter author JK Rowling fell from 19th to 23rd in this year's rankings, with her tax liabilities dropping from £48.6m to £34.8m.
It comes as the world-famous writer's earnings dropped from an estimated £100m last year to £72.5m as theatres and theme parks closed.
Musician Ed Sheeran is the most high-profile new entry to the tax list, ranking 32nd with tax payments of £28.2m.
Sports Direct owner Mike Ashley climbed one place in the rankings to 12th, despite his tax liabilities dropping by £8.8m to £46m.
Meanwhile, Sir Philip Green dropped out of the top 50 list as his Arcadia retail empire fell into administration.
Stripping out one-off factors, the tax bill of the UK’s wealthiest fell to below £2.5bn, the list’s compilers said.
Robert Watts, compiler of the list, said: "These worrying numbers show the tax taken from many of Britain's super-rich has fallen sharply, largely because their businesses have seen a downturn."
Institute for Public Policy Research executive director Carys Roberts said the UK tax system was "no longer fit for purpose".
She said: "Last year's rich list identified the UK's 10 richest people and families, yet only two of them are listed among the 10 who paid most taxes in the last financial year.
"These glaring gaps show that our current tax system is no longer fit for purpose, it's just too easy for some of the UK's richest people to avoid paying taxes in the way that most ordinary families have to."
The annual survey examines the taxes due on business profits, share sales, dividend income, and, where known, personal income through salaries, to identify individuals and families who contribute most to the public purse.
Additional reporting by PA
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments