Others felt the Labour Government was likelier to tax by stealth in its approach, one saying: “they won’t raise rates but will freeze income tax and other thresholds, which is a tax rise.” Almost half now see tax rises as the single biggest threat to their wealth, behind only inflation (52%) and up from 22% six months ago.
More than eight out of ten HNWIs expect the Labour Government to raise taxes further in the next 12 months, with respondents predicting capital gains tax (38%), Income Tax (37%) and Inheritance Tax (35%) as the most likely to be increased.
One respondent said the Labour Government will “raise any tax they can get away with”, with another adding “you just know that a Labour Government will increase the tax take where and when it can”.
The main reasons given are Changes to inheritance tax, adding VAT to private school fees, the impact on business, changes to tax thresholds and pensions, changes to the Winter Fuel Allowance, and the increase in Employer National Insurance,.
The survey also suggests that tax changes are the primary reason that around 66% of HNWIs who voted Labour in 2024 now regret that decision.
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