How Many UK Millionaires Govt

The United Kingdom is home to a sizeable population of millionaires. But how many UK millionaires are there exactly? Getting an accurate count is challenging, but estimates from different sources can provide a good indication of the total numbers.

Estimating the Number of UK Millionaires

There are a few ways to estimate the number of millionaires in the UK:

• HMRC statistics – The UK tax authority, HM Revenue & Customs, publishes statistics on the number of taxpayers with incomes over £1 million per year. This captures individuals with very high salaries but does not include wealth from other sources.
• Wealth reports – Research firms like Credit Suisse publish annual global wealth reports that estimate the number of millionaires by country based on overall wealth.
• Surveys – Some consultancies and market research firms conduct surveys asking individuals about their assets to gauge affluence and wealth.

Each approach has advantages and limitations. But combined, they can paint a picture of how many millionaires reside in the UK today.

HMRC Income Statistics

HMRC publishes detailed tables each year on the number of UK taxpayers reporting over £1 million in annual income. This looks specifically at high salaries rather than overall wealth.

Some key points from the latest 2018-19 HMRC statistics:

• There were 29,000 taxpayers in the UK with annual incomes over £1 million.
• This is an increase of 6,000 compared to the previous year, when there were 23,000 UK taxpayers earning over £1 million annually.
• The 29,000 taxpayers had total combined incomes of £84 billion – equivalent to an average income of £2.9 million each.
• People with salaries over £1 million paid £24 billion in income tax – representing 30% of all income tax paid in the UK.

So based on reported salaries alone, there are a minimum of 29,000 individuals in the UK earning £1 million or more per year. The actual number with £1 million in total assets is likely significantly higher when non-salary wealth is included.

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Wealth Reports

Global wealth reports from firms like Credit Suisse offer broader estimates of millionaire numbers based on overall assets.

Here are some top figures on UK millionaires from the latest Credit Suisse Global Wealth Report:

• There are 2.498 million millionaires in the UK based on total individual wealth in GBP.
• This means 1 in every 30 adults in the UK is a millionaire when accounting for all assets.
• The total wealth held by UK millionaires amounts to over £5 trillion – 15% of all household wealth in the country.
• The UK has the 6th most millionaires in the world behind only the United States, China, Japan, Germany, and France.

The Credit Suisse report captures millionaire numbers across the whole adult population rather than just top earners. This provides a more comprehensive snapshot than income statistics alone.

Survey Data

In addition to government reports and wealth research, some consultancies conduct bespoke surveys to estimate the number of UK millionaires:

• Consumer research firm Opinium runs an annual wealth survey asking UK adults about assets. Their latest survey found 1.6 million millionaires in Britain.
• Businesses specializing in services for high net worth clients often research and profile the affluent population. Forecasters like Venistat regularly update estimates of the size of the UK millionaire market.
• Surveys focusing specifically on high net worth individuals rather than the overall population can complement broader wealth reports.

Geographic Spread

The vast majority of millionaires in the UK reside in London and the Southeast region.

• London has the highest concentration, home to almost 1 in 5 of all UK millionaires.
• Affluent commuter hubs in the wider Southeast like Surrey, Berkshire, and Buckinghamshire are also millionaire hotspots.
• There are far fewer spread across other regions – for example, only around 2% of UK millionaires live in the Northeast based on wealth survey estimates.

Factors like high professional salaries, investment banking, and proximity to expensive real estate help drive millionaire numbers in London and the Southeast versus other areas.

International Comparison

The UK has the 6th largest millionaire population in the world. But some countries still have a higher density based on their overall population:

• The United States has over 20 million millionaires – more than any other nation.
• Around 7% of US households have wealth of $1 million or more.
• Switzerland and Hong Kong have the highest millionaire density, with more than 1 in 5 households in the millionaire bracket.
• The UK’s millionaire ratio of around 3% is on par with similar European countries like France and Germany.

So while the UK lags the very top countries, it still possesses one of the largest absolute millionaire populations globally.

Growth Trends

The number of millionaires in the UK has seen steady growth over the past decade:

• In 2010, Credit Suisse estimated under 1.7 million millionaires – around 700,000 fewer than today.
• Millionaire numbers took a hit after the 2008 financial crisis but regained ground over the ensuing recovery.
• Expert predictions suggest the UK millionaire ranks could swell to over 3 million by 2030 if growth continues at around 5% per year.

Key drivers behind the rise include strong stock market returns, high-paying jobs in sectors like finance, and cumulative long-term wealth compounding for the affluent population.

Impact of COVID-19

The COVID-19 pandemic temporarily slowed the growth in UK millionaire numbers in 2020.

• UK millionaire wealth still increased by over 4% to £5.5 trillion in total during 2020 per Credit Suisse data.
• But the pandemic disruption meant the millionaire population itself grew at a slower 2.7% rate.
• Combined impacts of volatile markets, recessions, lockdowns, and unemployment put a brake on new additions to the millionaire segment.
• Growth has picked back up in 2021-2022 as economies recover and markets rebound.

The pandemic friction for millionaire growth appears a temporary setback with an now back to a normal 5%+ growth trajectory.

Conclusion

By synthesizing data from multiple authoritative sources, we can estimate around 2.5 million millionaires currently reside in the UK. This reflects around 3% of the British adult population possessing wealth of £1 million or above.

The vast majority are concentrated around London and the Southeast. But overall, millionaire numbers are growing at a steady rate across all regions.

While other countries like the US and China may have more millionaires in absolute terms, the UK still possesses one of the world’s largest millionaire populations relative to its overall size. This cohort has accumulated over £5 trillion in wealth – a significant concentration of assets.

As the UK economy continues expanding, its already substantial millionaire segment is projected to keep growing steadily. But economic shocks like COVID-19 can temporarily dampen the pace by impacting broader market fortunes or high-paying jobs.