UK Wealthy Sentiment Sours Amidst Tax Policy Anxiety

The 10th edition of the Saltus Wealth Index, which tracks the perspectives of 2,000 investors with at least £250,000 in investable assets, shows a sharp decline in sentiment. The index score has slipped to 60.3, down from 64.7 a year ago. Broader confidence in the UK economy has seen an even steeper drop, falling from 66% to 56% over the last twelve months.

Driving this apprehension is a specific list of anticipated fiscal measures. Pensions remain the primary source of anxiety, with 70% of respondents concerned about potential reforms, including the possible removal of tax-free lump sums. Inheritance Tax changes and the future of ISAs follow closely, with 67% and 66% of individuals respectively citing these as significant worries. Furthermore, 67% of those surveyed expressed concern regarding a mooted 10% death tax on estates, while 62% fear the introduction of an annual wealth tax.

Property assets, which represent a substantial portion of the average £4.2 million net worth among respondents, add another layer of complexity. With seven in ten individuals relying on their primary residence to fund retirement, the prospect of a land value tax or changes to lifetime gifting caps has complicated long-term financial planning. Mike Stimpson, a partner at Saltus, noted that these policies have transitioned from theoretical debates into immediate concerns that dictate how wealth is transferred to the next generation. As the Autumn Budget nears, the report underscores an urgent demand for policy clarity to mitigate the growing uncertainty among the UK's high-net-worth population.