HMRC treats people with income of £200,000 or more, or assets of £2 million or more, in any of the last three years as “wealthy” and manages them through a dedicated Wealthy team. Higher earners also face complex rules on the personal allowance taper, pension allowances and investment income, each of which needs care. Tax investigation insurance pays your accountant’s fees if HMRC opens an enquiry into your return.
How does HMRC define wealthy individuals?
HMRC’s published explanation of how it collects tax from wealthy individuals defines its wealthy population as people with “Income of £200,000 or more, or assets equal to or above £2 million in any of the last 3 years”, about 850,000 customers, managed by the Wealthy team in its Customer Compliance Group. That page was last updated in December 2022. HMRC’s Wealthy and Mid Sized Business Compliance directorate brought in £9,962 million of compliance yield in 2025 to 2026 (see our HMRC investigation statistics).
Where do higher earners need to take care?
- The personal allowance taper on income over £100,000. See personal allowance tapering.
- The High Income Child Benefit Charge for income between £60,000 and £80,000. See the High Income Child Benefit Charge.
- Pension contributions above the annual allowance or tapered allowance. See pension contributions for business owners.
- Dividends and gains, including dividend tax rates and Capital Gains Tax.
- Overseas income and accounts, which HMRC can compare with information received under the Common Reporting Standard.
- Property income, including finance cost restrictions.
What does an enquiry into a higher earner involve?
An enquiry follows the normal rules: HMRC usually has 12 months from when a return is filed on time to open it, and discovery assessments can go back further in some cases. With more income sources, more documents are needed and more questions can follow, so professional fees can be higher. See how much an HMRC investigation costs.
What does tax investigation insurance pay for?
Solar Protect cover responds to full and aspect enquiries into Income Tax returns, and directors of covered companies can be included.
Tax investigation insurance pays your accountant’s fees if HMRC opens a check after your cover starts. Solar Protect cover pays up to £100,000 with no excess. It never pays tax, interest or penalties. Read how our cover works or get a quote today.
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. Sources: HMRC, How HMRC collects the right tax from wealthy individuals; HMRC Annual Report and Accounts 2025 to 2026. Cover is subject to the policy terms, conditions and exclusions. This guide is general information, not personalised tax advice.