The Sunday Times tax list reveals a decline in tax payments among high net worth individuals, attributed to struggling businesses and changes in dividend taxation.
Alex Gerko, founder of XTX, tops the tax list with a £664.5 million tax bill, highlighting the success of algorithmic trading and significant tax contributions from individuals in the financial industry.
Deep dives
Top Taxpayers: Insights into the Sunday Times Tax List
The Sunday Times tax list ranks the top tax contributors among high net worth individuals, business owners, and celebrities. Compiled by Robert Watts, the list measures personal and business taxation. This year, the list includes 100 people. Most of the list shows a decline in the amount of tax paid compared to the previous year, mainly due to struggling businesses and changes in dividend taxation. Notably, Ed Sheeran and J.K. Rowling stand out by paying more tax than before, with Sheeran's touring revenues contributing significantly. The list prompts discussions about the fairness of tax burdens and the effectiveness of clamping down on tax avoidance.
Alex Gerko: A Mathematical Titan on Top of the Tax List
Alex Gerko, founder of XTX, a London-based market maker, tops the Sunday Times tax list. Gerko, a brilliant mathematician, quadrupled XTX's revenue from 2015 to 2018. As a critic of the invasion of Ukraine, he has donated over £20 million to Ukraine. Gerko's tax bill for the year reached an impressive £664.5 million, reflecting his corporation tax and a substantial dividend payment. His story highlights the success of algorithmic trading and the significant tax contributions made by individuals in the financial industry.
Bernie Ecclestone's Tax Troubles
Bernie Ecclestone, the former Formula One boss, ranks high on the tax list due to a £652.6 million bill. Ecclestone pleaded guilty to fraud after failing to declare overseas assets worth over £400 million. The investigation covered 18 tax years and revealed trusts that Ecclestone initially denied being involved in. Although Ecclestone claimed it was an honest mistake, the substantial settlement paid to HMRC points to extensive back payments and fines. Ecclestone's case raises questions about tax transparency and the potential for significant penalties for non-disclosure of assets.
A Russian-born trader and a billionaire who admitted to fraud have topped this year’s Sunday Times Tax List, but more than two-thirds of the 100 individuals and families on the list contributed less tax this year. So, at a time when the tax bill for most people is up, who is paying less, and why?
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Guest: Robert Watts, Contributor, The Sunday Times.