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According to figures published by World Population Review, the UK had 2,390,318 high net worth individuals (HNWIs) in 2025. HNWIs were defined as those with at least $1 million in cash and assets that can be converted into cash.
However, a nationwide survey by Timeline reveals that 49% of affluent households – those with a net worth of £500k or more – don’t seek financial advice.
While your affluent clients may enjoy significant financial freedom and security, HNWIs may also face unique challenges when it comes to managing their wealth.
Keep reading to discover three compelling reasons why your HNW clients need to consult a financial planner if they want to make the most of their wealth.
1. Managing complex finances
A higher level of wealth brings opportunities, but it can also lead to more risk and long-term planning challenges.
Indeed, HNWIs often have complex, fragmented finances that might include:
- Multiple investment accounts, both in this country and abroad
- Valuable possessions, such as jewellery and art
- Significant cash savings, such as ISAs
- Highly valuable pension pots
- UK and overseas properties
- Assets held in trust.
Moreover, when significant assets are involved, the stakes are much higher. As such, even small mistakes, such as a poorly timed tax or investment decision, could be expensive.
How a financial planner can help
A financial planner can minimise any uncertainty your clients may feel about managing their assets by bringing everything together into a single, comprehensive roadmap for working towards their goals. What’s more, financial advice could help your HNW clients reduce the risk of costly errors, such as missed tax reliefs and allowances.
At Sovereign, we work closely with other professionals such as accountants and solicitors to ensure your clients receive a joined-up, holistic service that meets their specific needs.
2. Effective tax planning
As your clients’ wealth increases, their tax exposure is likely to rise too.
HNWIs may need to navigate the following tax implications:
- Capital Gains Tax when disposing of assets
- Higher-rate and additional-rate Income Tax
- Dividend Tax on income received from shares
- Loss of allowances, such as the Personal Allowance
- Inheritance Tax (IHT) on their estate (payable by your clients’ chosen beneficiaries).
Additionally, in her Autumn Budget, Chancellor Rachel Reeves announced several tax changes that could affect your HNW clients, including:
- Tax rates on dividends will rise by two percentage points from April 2026, while savings and property income will rise by the same amount from April 2027.
- From April 2028, UK properties worth more than £2 million will face an annual “mansion tax” of at least £2,500, rising to £7,500 for properties worth more than £5 million.
Given their potentially high tax exposure, it’s no surprise this is one of the top financial concerns for many HNWIs.
How a financial planner can help
Our financial planners have extensive knowledge and experience supporting HNWIs to navigate complex tax rules, allowing them to keep as much of their wealth as possible.
We can ensure that your affluent clients structure their income tax-efficiently and make strategic use of available tax allowances, reliefs, and exemptions. This could allow them to maintain their lifestyle and leave a meaningful legacy for loved ones.
3. Preserving and protecting wealth for the next generation
Whether your clients’ wealth is inherited or earned through years of hard work, they’ll be keen to transfer as much of it as possible to the next generation.
Unfortunately, the latest government figures show that a growing number of estates are triggering an IHT charge, and those who pay are generally paying more.
This is largely due to frozen IHT thresholds and rising asset values (particularly property). However, a lack of financial planning also plays its part. Research by FTAdviser reveals that only 26% of HNWIs have IHT mitigation strategies in place, despite 45% being worried about financial stability for the next generation.
How a financial planner can help
Poor or late estate planning could result in your clients’ beneficiaries losing a large portion of their inheritance to tax.
In contrast, our financial planners can provide the advice and guidance your HNW clients need to create a joined-up strategy that accounts for their complex assets and family dynamics. For example, making effective use of gifting allowances and trusts could allow HNWIs to protect their family wealth while retaining control where it’s needed.
Our financial planners can also help your clients prepare for upcoming changes to IHT rules regarding pensions.
To date, most unused pensions are not included in a person’s estate for IHT purposes, making them a valuable tax-planning tool. However, from April 2027, this exemption will be removed. Individuals with larger pension pots and estates are most likely to be affected by this change.
If your HNW clients were relying on using their pensions to pass on some of their wealth tax-efficiently, now is the time for them to review and amend their IHT plan.
Get in touch
If you’d like to find out more about how we can work together to help your HNW clients manage and preserve their wealth, we’d love to hear from you.
Please email hello@sovereign-ifa.co.uk or call us on 01454 416653.
Please note
This article is aimed at professional advisers only and does not constitute advice.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, tax planning, or trusts.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your clients’ individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your clients’ investments (and any income from them) can go down as well as up and they may not get back the full amount they invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your clients’ overall attitude to risk and financial circumstances.
Approved by Best Practice IFA Group Ltd on23/12/25