Families with high investable wealth are taking proactive measures such as downsizing their homes to prepare for Labour's proposed tax changes that would increase the cost of private school fees.
Labour plans to remove the VAT exemption and reduce business rates relief for private schools, which could lead to a 20% hike in fees. Wealth advisor Lucy Chahil from Charles Stanley reports that clients are selling their larger homes for less expensive ones to free up cash, moving to areas with good state schools as a backup, and delaying major purchases to ensure they can afford the anticipated higher fees.
Additionally, concerns extend to international clients of wealth advisors, who are hesitant to move to the UK due to fears of Labour's intention to abolish non-dom status, which could increase their tax liabilities.
Despite reassurances from Labour leaders that they will not be a tax-raising government, advisors note skepticism among clients about the longevity of these promises. Families are adjusting their financial plans ahead of the next election, where Labour is currently leading in polls.