As Chancellor Rachel Reeves faces new and mounting pressure to address a £22bn shortfall in the public finances, families across the UK and those with overseas assets in Britain should be taking immediate steps to mitigate the potential impact.

This is the warning from deVere Group, one of the world’s largest independent financial advisory and asset management organizations, as proposals from a left-of-centre thinktank on Tuesday are urging sweeping changes to the UK’s tax structure. 

These proposals include significant revisions to Capital Gains Tax (CGT), Inheritance Tax (IHT), and National Insurance.

Nigel Green, the CEO of deVere Group, notes: “Introducing further tax burdens on families, entrepreneurs, and investors is a perilous and misguided approach. 

“These measures, intended to target the wealthier segments of society, would in practice penalise middle-class families, successful business owners, and expatriates with assets in the UK. 

“The proposed changes to CGT and IHT would not only erode the value of accumulated wealth but would also discourage long-term investment and financial planning, particularly at a time that demands stability and confidence.”

He continues: “It’s crucial to remember that such tax hikes will not just affect the wealthy elite, but will inevitably impact those working to secure their financial futures. 

“Middle-income families who have prudently invested in property, pensions, or businesses will bear the brunt of these tax revisions.

“These are people who have already paid their fair share in income taxes and are now being asked to pay more simply for planning responsibly for the future.”

Families living abroad but maintaining financial ties to the UK are equally at risk. 

Proposed increases in CGT and IHT could directly impact their wealth preservation strategies, leading to additional liabilities on their UK-based assets. 

With international families holding real estate, business interests, or pension plans within the UK, these measures could deter investment and strain relations with expatriates who have long supported the UK economy from abroad.

“Many of our international clients who have invested in the UK will face growing uncertainties. The message these proposed changes send is that the UK is becoming less welcoming to overseas investment. 

“It’s a dangerous precedent and will discourage the inward flow of wealth and investment that the economy desperately needs.”

In light of the potential changes to CGT and IHT, deVere Group strongly advises families, both in the UK and abroad, to review their financial portfolios and take proactive measures to safeguard their assets.

“With the looming uncertainty, it is imperative to consult a financial advisor to better understand how potential tax hikes could impact your specific financial situation. Advisors can recommend strategies to minimise the tax burden and maximise the efficiency of your wealth management,” says Nigel Green.

“Consider alternative ways to structure your investments and assets, such as establishing trusts or transferring wealth through legal means that may offer tax relief.

“With potential changes to IHT, now is the time to review your estate plan. By starting inheritance planning early, families can take advantage of current tax allowances and exemptions before they are potentially reduced.”

Ensuring that your portfolio is diversified across different regions, sectors and asset classes can help reduce exposure to specific tax regimes and localised financial risks.

The deVere CEO continues: “In some cases, moving assets or investments out of the UK may provide more favourable tax environments. While this isn’t a decision to be taken lightly, it can be an extremely worthwhile consideration for those particularly exposed to UK tax laws.”

Tax policies must strike a balance between raising necessary revenue and encouraging long-term financial stability. Penalising prudent savers and investors for the UK’s fiscal shortcomings is not the answer.

“Families across Britain and those abroad with links to must stay ahead of these potential changes and work with trusted financial advisors to ensure their wealth is protected, their investments continue to grow, and their financial futures remain secure.”