Around one-in-four (26%) of the UK wealthy have tax mitigation strategies in place despite 45% worrying for the next generation.
This is according to research from private bank Arbuthnot Latham, which also found that online demand for inheritance tax reduction strategies in the UK wealthy segment has leaped 13% in the last year.
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There are many ways to protect future generations’ financial future, as well as your legacy. The bank recommends moves such as lifetime giving, trusts, pensions, and business relief.
Research from Arbuthnot Latham also showed that 81% of the UK’s most affluent people are stressed about their finances.
Largely, the concerns revolved around future planning and retirement as 51% were worried about maintaining their lifestyle in later life.
In addition, 39% were worried about the value of their investments and 25% pondered about providing for future generations.
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By GlobalDataHowever, 24% were worried about the tax burden of the UK and 22% were nervous about becoming a victim of fraud.
As a result, nearly three in five wealthy individuals (59%) in the UK are considering relocation abroad, the main reason (36%) being a desire for an improved standard of living. This was followed by lower property costs and benefitting from a more favourable tax regime with 28% and 21% of respondents respectively.
Rachel Wyatt, wealth planner, Arbuthnot Latham, said: “Many people feel uncomfortable talking in any detail about inheritance and too often it’s not discussed. The danger with this approach is no-one achieves their desired outcomes.
“An estate plan gives you the tools to have a proper conversation, removing uncertainty and empowering your beneficiaries to plan efficiently themselves.”
