HNW clients ‘increasingly anxious’ as Budget tax rumours swirl

High net worth (HNW) clients are increasingly anxious about the future direction of UK tax policy, as speculation intensifies around what could be announced in the Autumn Budget, Rathbones has stated.

The wealth management firm reported a “surge” in conversations with affluent clients who were worried about future tax policy.

Instead of focusing on a single wealth tax, many were increasingly concerned about the cumulative effect if potential changes affecting pensions, inheritance tax (IHT), capital gains tax (CGT), and other aspects of personal taxation.

Research from Rathbones found that 58 per cent of people with at least £250,000 of investable assets ranked changes to tax rules affecting their retirement income among their top retirement concerns.

Almost half (49 per cent) said uncertainty around pension policy made them anxious and left them needing additional support when making financial decisions.

“One of the clearest messages from clients is that uncertainty itself has become a challenge,” said Rathbones chartered financial planner and head of Guildford office, Faye Church.

“People can generally adapt to tax changes when they understand them. What is much harder is making long-term decisions when the direction of policy feels unclear.”

Church noted that, for many clients, the question was not simply about how much tax they might pay, but whether their plans will still achieve the same goals.

“We're seeing people review pension strategies, reassess unrealised capital gains and revisit inheritance plans as they consider what future policy changes could mean for their retirement income, their families and the legacy they hope to leave behind,” she added.

“Rather than reacting to every Budget rumour, clients are looking for reassurance that their plans remain flexible. Tax matters, but long-term objectives, family circumstances and financial wellbeing should remain the primary focus."

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