Wealthy households have become less confident about the UK’s economic outlook since the Labour government came to power, particularly in terms of taxes.
High earners have seen several threats to their wealth since the Labour party won the 2024 general election more than a year ago, such as extra stamp duty charges, higher national insurance and capital gains tax rates and the end of non-dom status.
There are more changes coming, with pensions due to fall under inheritance tax from April 2027, plus further tax changes are expected to be announced in November’s 2025 Autumn Budget.
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It is perhaps no surprise that the latest Saltus Wealth Index shows a drop in confidence among high-net worth individuals (HNWIs).
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Confidence in the UK’s economic outlook among HNWIs has dropped from 84% a year ago to 66%, although this is up from 48% at the start of 2025.
One in four HNWIs cite ‘the economy going into recession’ as their biggest worry, with major concerns about tax rises.
The 2025 Autumn Budget could further dent confidence among HNWIs.
Rumoured changes include national insurance being charged on rental income and capital gains tax being applied on home sales above £1.5 million, effectively a mansion or wealth tax.
What are wealthy households worried about?
Latest research from wealth manager Saltus shows that tax remains a top concern for HNWIs.
The Saltus Wealth Index shows 78% of HNWIs expect more tax rises within the next 12 months and almost half see tax changes as ‘the biggest single risk to their wealth’ - second only to inflation.
Four in ten say they anticipate higher levels of income tax.
Employers’ national insurance and reduced pension contribution relief are also expected targets, with 40% saying they think all three could see reforms in the next 12 months.
A majority of respondents also think capital gains tax will be targeted, with 46% expecting a rise either and 34% anticipating further freezes.
A similar figure expect inheritance tax rates to increase or for the threshold at which it is paid to remain frozen.
How the wealthy are protecting their wealth
The majority of HNWIs have concerns about the impact of future tax changes and many are already taking steps to mitigate the risk, according to the report.
A third are considering strategies to protect their pensions from inheritance tax, while 30% are reviewing retirement savings or income in anticipation of legislative reform.
Around a third have either made formal pension beneficiary nominations or setup trusts and 14% have placed conditions on gifts and inheritance.
Mike Stimpson, partner at wealth management firm Saltus, said: “Confidence in the UK economy is showing a degree of recovery amongst high net worth individuals, up from the lows we saw in January, but this is tempered by concerns over future tax changes and what the Labour Government will do next.
“Whether it’s capital gains tax, income tax or inheritance tax, HNWIs are braced for further changes at the Autumn Budget given the Chancellor’s limited fiscal room for manoeuvre.
“This cohort are the wealth creators, investors and employers who drive economic growth - if their confidence is undermined by continual uncertainty, that has consequences for everyone.”
