The pace of change in the UK’s economic and political landscape shows little sign of slowing. Rachel Reeves’ Budget, ongoing geopolitical instability and domestic political uncertainty are all reshaping the financial outlook for individuals and businesses alike.
For high-net-worth individuals, the stakes are particularly high. In response, we spoke to a broad range of leading wealth advisers across the South West to distil the key considerations, risks and opportunities that should be shaping financial decision-making over the year ahead.
A recurring theme among advisers was the importance of seeking expert input. “This period of sustained change highlights the value of proactive, strategic financial planning supported by clear advice and long-term perspective,” says Louise Osborne, a partner at Albert Goodman Chartered Financial Planners, a view echoed by many of those we spoke to.
Changes to inheritance tax remain front of mind for advisers and clients alike, says James Mohide, tax director at BDO.
“The reforms announced in the budget were widely seen as seismic, significantly altering long-established reliefs and are having profound effects on business owners and family enterprises.
“Against that backdrop, the announcement on December 23, 2025 to increase the IHT business relief and agricultural property relief combined limit to £2.5 million, up from the previously announced £1 million, provides greater protection.
“However, it does not allay fears for individuals who hold business / agricultural assets in excess of this allowance from April 6, 2026, particularly given the often illiquid nature of the assets. A deferred tax charge attaching to the asset, which could crystallise on the sale of it, would have been a more palatable approach.”
He adds that the reforms do at least introduce some welcome flexibility.
“Equally important was the decision to allow the £2.5m limit to be transferable between spouses. This change brings a degree of flexibility into succession planning and shows that the Government is in listening mode.”
Tom Baker, of Bristol-based atomos wealth, adds: “The reform of Business Relief and Agricultural Property Relief marks a watershed moment.
“While the initial proposal of a £1m cap caused significant alarm, the revised limit of £2.5m for 100 per cent relief (effective April 2026) provides more breathing room.
“Crucially, the government’s concession allowing this allowance to be transferable between spouses means a couple can now protect up to £5m in qualifying assets.
“However, AIM-listed shares have been carved out; they now receive only a flat 50 per cent relief regardless of the cap, effectively imposing a 20 per cent tax rate on portfolios previously considered ‘IHT-free.’”
Inheritance tax is a perennial concern for wealth advisers, but recent policy shifts have pushed it firmly back to the top of the agenda and made it a central theme in discussions with almost all of those we spoke to.
Michele Rogers, head of Rathbones’ Exeter office, says: “The Autumn Budget’s U-turn on inheritance tax relief for farmers and renewed scrutiny around pension planning demonstrated that longstanding assumptions can no longer be relied upon.
“For many years, pensions and SIPPs were seen as vehicles for inheritance tax planning, but, changes announced by the Chancellor to inheritance tax and salary sacrifice have led to an increase in the number of people seeking professional guidance to navigate new rules and ensure their wealth is structured effectively.”
Following Chancellor Rachel Reeves’ second Budget, attention is now turning to April, when several measures begin to take effect, says George York, chartered financial planner at Aquila Financial Management.
For many, the most immediate impact is not a new tax headline or rule change, but the continued drag of frozen allowances. Income tax thresholds, capital gains tax allowances and inheritance tax nil-rate bands have remained static, steadily pulling more income and assets into the tax net each year.
Against that backdrop, advisers are seeing fiscal drag emerge as one of the most persistent pressures on client outcomes.
Joseph Sykes, founder and chartered financial planner at Stride Financial Advice in Bristol, says the impact is often gradual but increasingly material.
“Frozen tax thresholds and shrinking allowances have created a quiet but persistent tax creep.
“While less visible than headline policy changes, fiscal drag is steadily pulling more income and assets into higher tax bands, often without clients realising until the impact is felt.
“For high-net-worth individuals, this has made ongoing planning and regular review far more important than it was even a few years ago.”
Recent reforms have pushed pensions firmly back into the estate planning conversation, forcing high-net-worth individuals to rethink long-held assumptions about how pension wealth is treated on death.
Ashton Critchlow, managing director at Ifamax Wealth Management, says the Budget has materially changed the framework advisers are working within.
“Since the introduction of Pension Freedoms in 2015, pensions have played an increasingly important role in long-term and estate planning.
“Again, the Autumn Budget really moved the goalposts in this area. From April 2027, pension funds are set to fall within the estate for IHT purposes, with transfers to spouses and civil partners remaining exempt.”
He adds that while technical mitigations exist, the changes reinforce the need for a more deliberate, planning-led approach.
“You could argue that things were relatively simple before, leave your business to your children. Do not spend your pension and pass it on tax efficiently on death.
“A clear long-term plan, built around goals, family priorities and future aspirations, provides a framework that can adapt as legislation changes.”
The current investment environment is being shaped by a narrow concentration of high-performing technology stocks, prompting advisers to revisit how portfolios are constructed for wealthy clients.
Ben Swarbrick of James Hambro & Partners points to the growing tension between capturing growth and managing concentration risk.
“Global markets continue to be dominated by the extraordinary performance of the ‘Magnificent Seven’ and broader AI-driven technology themes. While this cohort has powered headline returns, it has also intensified the concentration of performance, raising questions for investors about how much exposure is prudent.”
For wealth managers, this is driving more nuanced conversations with financially independent clients about balancing near-term performance with long-term resilience.
“For many UHNW investors, the question is no longer simply how to capture growth, but whether to lean further into these high-performing sectors or accept a more diversified portfolio that may lag during periods of tech outperformance but offers better long-term resilience.”
On the investment environment, George York of Exeter-based Aquila Financial Management adds: “After more than a decade of ultra-low interest rates, investors are operating in conditions where returns are no longer driven solely by taking greater levels of risk.
“Higher base rates have altered the balance between growth, income and capital preservation, prompting many high-net-worth investors to review portfolios built in very different circumstances.
“The emphasis has moved away from simply maximising returns, instead towards building portfolios that are diversified, resilient and aligned with long-term objectives.”
York adds: “Geopolitical uncertainty adds another layer to consider. Ongoing global tensions and political instability continue to drive market volatility, reinforcing the importance of resilience.
“Diversification today is not just about asset allocation, but about ensuring wealth structures can withstand economic shocks and policy change.”
Client expectations are evolving, particularly around how advice is delivered and what it should cost. Fee transparency, value for money and the role of technology are increasingly central to conversations between advisers and clients.
“One of the biggest shifts I’ve seen over the past couple of years is a growing sensitivity to fees,” says Naomi Keith, a partner and chartered financial planner at Bristol-based Aspire.
“The rise of low-cost, ‘self-service’ investment platforms has made investing more accessible, and understandably, clients are asking tougher questions about what they are paying for. This has put a welcome spotlight on value.”
For Naomi, this shift is forcing a broader rethink of what high-quality advice looks like in practice.
“Today, good wealth management is not about selling products or chasing performance, it’s about delivering bespoke financial planning that helps clients achieve their individual goals while navigating an increasingly complex tax landscape.”
Structural change within the advice sector itself is reinforcing that shift. Joseph Sykes of Bristol-based Stride Financial Advice points to consolidation and automation as defining trends.
“The advice industry itself is becoming more consolidated and increasingly automated. Artificial intelligence and model-driven solutions have improved efficiency, but they have also driven a more homogenised approach to advice.”
On this subject, Michele Rogers, head of Rathbones’ Exeter office, added: “One of the most notable changes has been the continued consolidation across the sector.
“The completion of the Rathbones and Investec Wealth & Investment (UK) merger in late 2023 was a major milestone, creating one of the UK’s leading providers of investment and wealth management services.
“Whilst consolidation is likely to continue, it does not necessarily signal the end of boutique or smaller firms; rather, it highlights the importance of matching the right provider to the client’s needs and long-term objectives.”
Christopher Dowling, Investment Manager, Quilter Cheviot, outlines some of the opportunities in the 2026 financial planning landscape:
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Short‑term gilts, for example, have quietly become one of the most tax‑efficient homes for cash for higher and additional‑rate taxpayers.
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Pension contributions also remain surprisingly generous for those with adjusted incomes up to £260,000.
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While ISAs have been around for years, using the full £20,000 annual allowance to invest, rather than simply save, continues to be one of the most effective long‑term tools for building real, inflation‑beating wealth.
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Many families are also choosing to support younger generations early, by funding junior ISAs or even junior pensions.
As fiscal policy continues to shift, a central question for high-net-worth individuals and family estate structures is how to reduce exposure to the cumulative impact of budget changes without undermining long-term objectives.
For advisers, the emphasis is increasingly on coordinated planning rather than isolated tax fixes.
Kelly Fern, tax director at Gravita, says mitigation is most effective when estate planning, tax strategy and investment decisions are considered together.
“High-net-worth individuals and family estate trusts can minimise the impact of the recent budget changes by combining estate planning for succession planning with broader tax and investment strategies.
“Lifetime gifting allows individuals to pass wealth to the next generation during their lifetime rather than upon death.
“Gifts made more than seven years before death typically fall outside the estate for inheritance tax (IHT) purposes – although we have to take care not to make a detrimental position for Capital Gains Tax, so advice is always recommended.”
With thresholds frozen and reliefs under pressure, timing is becoming more critical to effective planning.
“With continual freezing of IHT and reliefs, making gifts sooner rather than later can help mitigate future IHT problems as asset values grow.”
Beyond gifting, more structured solutions are playing a growing role in long-term succession planning for family wealth.
“Trusts also remain a powerful estate-planning tool, allowing assets to be removed from the settlor’s estate while controlling how and when beneficiaries receive them.”
For some families, corporate structures are also part of the solution.
“Family Investment Companies (FICs) are also increasingly popular, enabling growth to accrue to younger family members while retaining parental control and offering long-term succession planning, particularly where traditional reliefs are restricted.”
Poorly designed structures, advisers caution, can be unwound at significant cost if they prove unfit for purpose, and in the worst cases, all IHT planning may be undone.
Taken together, the advisers’ views point to a clear conclusion: this is not a climate in which high-net-worth individuals can afford to be passive.
The cumulative impact of fiscal drag, reform to long-standing reliefs, shifting pension rules and a more complex investment environment is steadily raising the cost of inaction, even where headline policy changes appear incremental.
In response, the emphasis is moving away from tactical, one-off fixes and towards joined-up, long-term planning that aligns tax, investment and succession decisions around clear family objectives, a framework that can adapt as political, economic and regulatory uncertainty continues to reshape the landscape.
As Louise Osborne of Albert Goodman says: “In this environment, financial planning is no longer solely focused on building wealth. It is about protecting value, managing complexity, and creating resilience. Clients need clarity, confidence, and control as they navigate an increasingly demanding fiscal landscape. With timely advice, careful planning, and a joined-up approach across tax, investments, pensions, and estate planning, it remains entirely possible to make well-informed decisions that support long-term goals.”
