Growing speculation around what the Chancellor may unveil in the Autumn Budget is impacting confidence among high-net-worth individuals, new research from Saltus suggests.
The Saltus Wealth Index measures HNWI sentiment in the UK, based on responses from 2,000 individuals with investible assets of £250,000 or more.
It found that confidence now sits at 60.3, down from 61.3 six months ago and 64.7 a year ago.
Confidence in the economy has dropped from 59% to 56%, widening the gap from the 84% recorded ahead of Labour’s first Budget in August 2024.
Ongoing rumours about possible tax and wealth policies the government has proposed, or could propose, is causing the highest levels of anxiety and concern amongst HNWIs. Tax changes are now one of the biggest perceived threats to personal wealth, with 40% identifying them as a key risk in 2026, behind only inflation (45%).
Two thirds (67%) are worried about a potential ‘death tax’ on all estates, with 31% feeling ‘very concerned’, making it the tax policy causing the strongest level of worry among respondents.
The prospect of further changes to inheritance tax and estate planning rules are also causing anxiety, with 67% worried overall and 28% feeling very concerned. A similar proportion (64%) say they are worried about a land value tax being added to or replacing existing property taxes such as council tax.
The Index also revealed concern among families about passing on wealth between generations, with three fifths (60%) concerned about a reduction in the cap on lifetime gifting.
Saltus said further changes to pensions are the single biggest concern in the research, with seven in 10 (70%) respondents worried about potential reforms. This includes 66% who are concerned about the removal of the pension tax-free lump sum.
There is also the added issue that 71% of HNWIs are planning to use their main home to fund at least some of their retirement. With the average HNWI home worth just over £1 million, property represents a significant source of wealth that many are relying on for their own retirement while also hoping to pass it on to the next generation.
Mike Stimpson, partner at Saltus, said: “While the latest Wealth Index shows that confidence among HNWIs is continuing to soften, what really stands out is how much the focus has shifted towards what the government might do next.
“The prospect of a 10% tax on estates is a clear worry. With two thirds of HNWIs concerned and almost a third very concerned, this is no longer a theoretical issue for families – it is becoming part of the conversation about when, how and how much, wealth should be passed on to the next generation.
“We are seeing the same concern across pensions, ISAs, Inheritance Tax, gifting and wealth taxation. Five years ago, some of these policies barely featured in the debate. Today, they are shaping how HNWIs think about their financial futures.”
Stimpson said greater clarity is vital, with families needing not only to understand what changes might be introduced but the wider direction of travel for wealth and taxation in the UK.
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