Wealthy individuals in the UK are accelerating plans to gift money to family members, driven by concerns over possible tax changes in the forthcoming Autumn Budget. Fresh analysis from Wealth Club indicates that over 40% of wealthy investors, with an average wealth of £3.1m, have already gifted money or are seriously considering doing so due to these worries.
Fears among these investors are primarily centred on potential increases to capital gains tax and inheritance tax (IHT). Alex Davies, founder and chief executive of Wealth Club, noted that investors are "clearly very concerned that this month’s Budget will mean bigger tax bills for them and are reacting accordingly."
The Chancellor is reportedly considering proposals that could impact family businesses, potentially almost doubling the tax bill when owners pass their company to their children. This follows previous IHT changes under former chancellor Rachel Reeves, which included bringing pensions into tax scopes and abolishing the non-dom regime.
In addition to gifting, wealthy investors are exploring other actions to mitigate potential tax changes. Nearly 30% stated they would put money into tax-efficient vehicles such as ISAs, while some are delaying investments or have sold assets like property, opting for cash.