High net worth individuals' confidence in the UK economy and their own wealth has risen despite concerns about the upcoming Budget, according to the biannual Saltus Wealth Index.

The index has risen from 58.2 in February to 64.7 in August but is still well below the high of 67.7 recorded in February 2022.

Two thirds (66%) of HNW individuals said they were confident in the UK’s economic outlook, in comparison to 84% this time last year before the first Labour Government Budget.

One in four (24%) said the economy going into recession was their biggest worry.

Confidence in the UK economy was higher among those who had received financial advice within the last three months (84%).

Economic confidence fell to 71% among those who have received advice in the last seven months to two years, and dropped to just 33% of those who have never received financial advice at all.

Confidence was lower among older HNW individuals, with only 15% of over-55s holding a positive economic outlook.

Tax remained a top concern for high net worth individuals surveyed for the report. Three quarters (78%) said they expected tax rises within the next 12 months. Almost half (46%) said they saw tax changes as the biggest single risk to their wealth, second only to inflation (58%).

Four in ten (40%) said they expected income tax to rise, despite 24% believing higher rates of income tax were already unreasonably high and a key barrier to economic growth.

The majority of those surveyed expected further changes to Capital Gains Tax. Respondents expected a rise (46%) or further allowance freezes (34%).

A similar number expected Inheritance Tax rates to increase (36%) or for the threshold at which it is paid to remain frozen (47%). One in five (17%) said IHT was already too high, with 30% calling for it to be abolished.

The HNW individuals surveyed for the report had already taken steps to mitigate potential tax rises.

A third (33%) said they were considering strategies to protect their pensions from IHT, while 30% were reviewing retirement savings or income in anticipation of legislative reform. More than a third (35%) said they had made formal pension beneficiary nominations, 34% had set up trusts and 14% had placed conditions on gifts and inheritance.

Mike Stimpson, partner at Saltus, said: “Confidence in the UK economy is showing a degree of recovery among high net worth individuals, up from the lows we saw in January, but this is tempered by concerns over future tax changes and what the Labour Government will do next.

“Whether it’s Capital Gains Tax, Income Tax or Inheritance Tax, HNWIs are braced for further changes at the Autumn Budget given the Chancellor’s limited fiscal room for manoeuvre.”

• The Saltus Wealth Index surveyed 2,000 UK respondents over 18 who have over £250,000 in investible assets, not including a primary residence. Censuswide carried out the surveyed online in August on behalf of Saltus. The Index ranges between 0 and 100, with higher values describing higher confidence in and fewer significant concerns with the UK economy and personal finances.