UK millionaires’ biggest fear is higher taxes would hit them harder than war
A survey by investment service Wealth Club has found that UK millionaires now see higher taxes as a greater threat to their wealth than war or economic instability, with the autumn Budget looming. Almost half of the 341 millionaires polled in July named higher taxes as their biggest concern, and a further 26 per cent cited future government policy, far outweighing worries about geopolitical events or inflation. This matters because it suggests confidence in Britain's economic direction is faltering just as chancellor John Healey prepares to deliver the Budget on 28 October, with Labour widely expected to target the super-rich with further tax changes.
Inheritance tax was the single biggest worry, cited by 22 per cent of respondents, followed by fears of a new wealth tax (21 per cent) and a possible rise in capital gains tax (18 per cent). Nearly all those surveyed expect taxes to rise over the coming year, and seven in 10 said they were not confident about the UK's economic outlook, with most also predicting higher interest rates and inflation. Despite this pessimism, over a third still viewed UK shares as undervalued. The findings come amid a separate push from the Patriotic Millionaires UK group, including Gary Lineker and Richard Curtis, who have urged mayor Andy Burnham to back a 2 per cent tax on wealth above £10 million.
In short
- Millionaires now fear tax rises more than war or inflation
- Inheritance tax, wealth tax and capital gains tax top their worry list
- Comes ahead of the 28 October Budget and calls for a wealth tax
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The case for
Higher taxation risks deterring investment, entrepreneurship, and talent from the UK, potentially shrinking the very tax base the government seeks to expand. Millionaires who have already contributed significantly through taxation reasonably question whether further increases represent fair policy or governmental overreach. When coupled with regulatory uncertainty and the international mobility of wealth, concerns about capital flight and reduced competitiveness merit serious consideration as economically rational responses to genuine policy risks.
The case against
The case for higher taxes rests on fundamental fairness and social necessity: the UK faces genuine underfunding of public services whilst inequality reaches levels that destabilise both opportunity and democracy. The wealthy have benefited from public institutions and infrastructure, making a 2 per cent levy on fortunes exceeding £10 million a modest contribution that other developed nations successfully implement. Pressing needs of public services and the principle that greater capacity to contribute entails greater responsibility must be weighed carefully against concerns about economic growth.
Explained simply
Wealth Club is an investment service that surveyed 341 UK millionaires in July about risks to their wealth and the economy. The poll asked about possible tax rises, government decisions and wider threats such as war and economic instability.
Inheritance tax, which is charged on some estates after someone dies, was the most frequently named tax concern. Respondents also mentioned a possible wealth tax on assets and capital gains tax on profits from investments; these are distinct taxes, and a wealth tax is not the same as a tax on income.
The survey reflects the views of those polled, rather than all wealthy people in Britain. Its findings matter because tax policy can affect investment decisions and the amount of money raised for public services.