Budget 2026: How might wealth be taxed?

In the Tax Journal, Dom Rothbarth, Private Wealth Partner, examines the Government’s potential options for raising revenue through the taxation of wealth ahead of Budget 2026.

He explores the prospects for a new wealth tax, reforms to capital gains tax (CGT) and changes to inheritance tax (IHT), assessing each against criteria including revenue-raising potential, administrative complexity, taxpayer behaviour and political sustainability. 

The article considers the practical and political challenges associated with introducing a comprehensive wealth tax, drawing on international experience and the conclusions of the Wealth Tax Commission. Dom also examines the debate around CGT reform, including proposals to increase rates or align them more closely with income tax, and discusses the potential impact of behavioural responses on projected revenues. 

Turning to inheritance tax, Dom explores possible reforms ranging from changes to existing reliefs and gifting rules to the introduction of additional charges linked to social care funding. He assesses the revenue-raising potential of these measures alongside the political sensitivities that continue to surround IHT reform. 

Dom concludes that the Government is more likely to build upon existing taxes on wealth than introduce entirely new ones, while keeping the door open to wider reforms of CGT and IHT. 

The full article was published by the Tax Journal in September 2026.