Wealthy expats fleeing Britain to maximise their cash could save an average £826,030 in lifetime taxes, according to new research.
The figure is 2.7% more than the lifetime tax a family expected to pay last year.
With the average household earning £41,027 a year, this massive bill would take at least 20 years to pay, says the Taxpayers Alliance, the charity responsible for calculating the figures.
The amount is based on paying tax at the higher rate of 40%.
For the bottom 20% of households paying tax at the basic rate, the cost is less but still a significant £319,732 taking 23 years to pay as the average family annual income is £13,841.
But for the top 20% of earners, the tax bill is staggering £1.68 million on average annual earnings of £86,768.
Hard-pressed families struggle with their bills
The wealthiest families still take 19 years to pay their lifetime tax bills.
The figures comprise direct and indirect taxes.
Direct taxes include income tax and national insurance contributions, while indirect payments to the government come from VAT, council tax and other duties.
VAT comes to around £170,000 over a lifetime, national insurance adds up to £107,000 and council tax £65,000.
TaxPayers Alliance chief executive John O’Connell said: “Politicians are forever lamenting the high cost of living yet all the while adding to the burden through higher taxes. Tax bills for households in every income group have gone up over the last year and that has obvious implications on hard-pressed families, already struggling with ever-rising bills.
Tax has doubled for everyone in two decades
“If we are to start living within our means as a country the government simply must tighten its belt and take the task of finding savings seriously. With a new administration in place, now is the time to introduce radical reforms to our tax system and spending priorities to ease the pressure on ordinary taxpayers and boost economic growth.”
Compared with the tax take in 1994-95, top earners are paying double to the government – an extra £843,443 on £843,527 two decades ago.
Average household lifetime tax has risen by £398,050 from £427,980 to £826,030 in the same period.
