The Blubber

According to HMRC, in the 2023/24 tax year, approximately 850,000 individuals, or about 2 percent of UK taxpayers, met the government’s definition of “wealthy.” This includes 395,000 people with annual incomes exceeding £200,000, and 455,000 with assets valued over £2 million. Those with assets between £2 million and £10 million fall under the category of “affluent.”

An annual income of £200,000 generally provides significant financial security. It may allow for private education options, including schools with classical curricula, though costs remain substantial due to tuition, fees, and additional charges such as VAT and facility contributions.

Many in this income range choose to live in areas with higher property values, sometimes taking on substantial mortgages. Lifestyle upgrades—such as additional storage spaces, household pets, or modest luxury appliances—may become attainable. However, relative wealth is often contextual. Some may compare their financial situation with others who own substantial real estate or high-value international assets, which can shift perceptions of what qualifies as “wealthy.”

At an income level of £500,000, individuals may be considered financially privileged in many parts of the UK. In metropolitan centers like London, however, higher costs of living and housing may mean this income supports a lifestyle that is comfortable but not necessarily extravagant. Some people in this bracket may afford larger properties, in-home staff, or high-end vehicles.

Despite higher earnings, this group often faces a proportionally large tax burden. With marginal tax rates, personal allowances tapering off, and rising living expenses—including education, domestic services, travel, and council charges—the overall financial pressure remains significant.

Even with a high income, many do not possess the kinds of assets or amenities typically associated with extreme wealth. Features like temperature-controlled wine cellars, designer interiors, or large-scale private infrastructure are generally outside the reach of even top earners.

What is often considered "ultra-wealthy" today involves significantly greater resources—such as private aviation, luxury marine vessels, or substantial real estate portfolios. These types of assets are typically associated with individuals in the top fraction of a percent in terms of global wealth.