High net worth individuals see tax rises as the single biggest threat to their wealth, according to research from wealth manager Saltus.
Nearly half (47%) of HNWIs view tax rises as the biggest threat, up sharply from 22% six months before.
Change to inheritance tax was cited by 18% as a key reason for losing confidence in the Labour Government, while 16% pointed to pension and threshold changes.
The research comes as deputy prime minister Angela Rayner reportedly suggested tax increases for savers in a secret memo to Chancellor Rachel Reeves ahead of this year’s spring Budget, including reinstating the pension lifetime allowance.
Mike Stimpson, partner at Saltus, warned that the reintroduction of the LTA would be a “regressive move.”
“Reinstating the LTA would be a regressive move that disincentivises long-term saving, penalises prudent financial planning and adds unnecessary complexity to an already convoluted pension system,” he said.
The Saltus Wealth Index shows 38% of HNWIs expect a rise in capital gains tax and 37% predict an increase in income tax, with 35% anticipating the same for inheritance tax.
“Rather than revisiting discredited ideas like the lifetime allowance, the focus must be on creating a simpler, more stable tax framework that supports long-term planning and economic growth,” Stimpson added.
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