Confidence among UK high-net-worth individuals (HNWIs) is continuing to weaken as fears over government tax and wealth policy is increasingly shaping how families protect and pass on their assets, Saltus has stated.

The latest Saltus Wealth Index Report showed that the biannual barometer of HNWIs’ confidence fell from 64.7 a year ago to 60.3. Confidence in the economy has also dropped from 59% to 56%, widening the gap from 84% recorded ahead of Labour’s first Budget in August 2024.

The firm said that the drop in confidence is driven by concern around the government’s tax policies, with 67% worried about a potential 10% ‘death tax’ on all estates, with 31% being "very concerned", while 62% are worried about a possible annual wealth tax.

Tax changes are now perceived as one of the biggest threats to personal wealth, with 40% identifying them as a key risk in 2026, behind only inflation (45%).

Further changes to pensions are the single biggest concern in the research, with 70% of HNWIs worried about potential reforms, including 66% who are concerned about the removal of the pension tax-free lump sum.

Saltus stated that the prospect of further changes to inheritance tax (IHT) and estate planning rules are also causing high levels of concern, with 67% worried overall and 28% feeling very concerned.

A similar proportion (64%) are also worried about a land value tax being added to or replacing existing property taxes, such as council tax.

Partner at Saltus, Mike Stimpson, said that while the drop in confidence is notable, what really stands out is "how much the focus has shifted towards what the government might do next".

He added: "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, IHT, 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.

"With the Autumn Budget approaching, greater clarity is vital. Families need to understand not just what changes might be introduced, but the wider direction of travel for wealth and taxation in the UK."

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