High net worth investors say Government policy and taxation is the single biggest threat to their wealth, according to survey of UK investors with over £1m of investible wealth.
Half (47%) of the 341 HNW clients - who hold average wealth of £4.5m - surveyed by investment service Wealth Club cited higher taxes as the biggest threat to their wealth.
Over a quarter (26%) of them highlighted Government policy overall as the biggest threat to their finances, substantially ahead of geopolitical events (9%).
Almost all (97%) believed taxes would 'definitely or probably' increase over the next 12 months. They were most concerned (22%) about a rise in inheritance tax while 21% were worried about the introduction of a wealth tax and 18% about an increase in capital gains tax.
HNW investors were pessimistic about the economic outlook for the UK. Seven in ten (70%) said they were not very confident or not confident at all about the UK economy over the next 12 months.
Nearly six in ten (58%) said they expected the Bank of England to raise interest rates over the next 12 months, while nearly two thirds (63%) expected inflation to increase over the same period.
However, they were more optimistic about the UK stock market. A third (34%) said it was undervalued and offered attractive long-term investment opportunities while 36% said it was fairly valued.
Alex Davies, CEO of Wealth Club, said: "It is deeply worrying that millionaires now see tax and Government policy as a bigger threat to their wealth than inflation, market volatility or geopolitical events. That is an extraordinary finding and suggests confidence in the UK's economic direction is already at a very low ebb.
“Investors understand that markets rise and fall. They can diversify, invest for the long term and take sensible steps to make their finances more tax efficient. But there is only so much individuals can do when the perceived threat to their wealth comes from Government policy itself.”
Wealth Club is a non-advisory investment service and broker. It is aimed at HNW investors and was set up 10 years ago by former executives at Hargreaves Lansdown.
• Wealth Club surveyed 341 clients with over £1m in investible assets during July. Estimated average wealth of those surveyed was around £4.5m.