From January 1, 2025, UK private schools will no longer be exempt from VAT, marking a significant shift in the financial landscape of independent education. This change, championed by the Labour Party, is expected to increase private school fees by 20%, placing additional financial pressure on families. As 

 highlights, this policy is part of a broader strategy to address inequality in the education sector by reallocating resources to state schools.

The introduction of VAT on private school fees is projected to generate approximately £1.7 billion annually for the Treasury, according to 

. While supporters argue that the measure will help fund public education, critics worry about its impact on middle-income families, who already face rising living costs. A report from 

 notes that some schools are exploring ways to soften the blow, such as offering scholarships or restructuring their fee models.

The impact on private school enrolments is a significant concern. Both 

 that over 3,000 pupils may leave private schools, potentially overcrowding state schools. This scenario underscores the need for affected families to assess their financial situation and consider alternative options.

If you have children attending private schools, here are some things to consider:

: With fees set to rise, reviewing household finances is crucial. Identify areas where expenses can be trimmed to accommodate the additional costs. A finance professional can help you review your plan.

 points out, many private schools are increasing their scholarship offerings to retain students. Parents should inquire about available programs and their eligibility criteria.

: For families unable to sustain higher fees, transitioning to state schools may be an option. A research into local schools and their enrollment policies can help you make an informed decision.

: Investing in tax-efficient savings accounts, such as Junior ISAs, can help parents plan for long-term educational expenses.

: Consulting with a financial advisor can provide tailored strategies to navigate this transition. 

 warns that the impact on families can be high, so it emphasizes the importance of seeking professional advice to optimize financial resilience.

The introduction of VAT on private school fees reflects a broader societal debate about equity in education. While the policy aims to address funding disparities, it presents immediate challenges for families relying on independent schools. By adopting proactive financial strategies, parents can mitigate the impact and make informed decisions for their children's education.

 notes, this policy change underscores the need for long-term planning in an evolving educational landscape. Whether by adjusting budgets, exploring scholarships, or transitioning to state education, families have several avenues to adapt. For those seeking clarity, the official sites offered detailed information on the changes. However, since each family’s finances are different, a professional financial adviser can add valuable insights into navigating this new terrain.

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VAT to Hit UK Private School Fees from January 2025: What It Means for Parents

 and felt overwhelmed by the sheer number of options? Do you know what they offer and whether they align with your financial goals?

Choosing a wealth manager best suited to your needs is just as crucial as financial planning itself. Each firm has its own unique approach, philosophy, and expertise, tailored to different client needs. At Compare Wealth Managers, we recognise the vital role a skilled financial planner can play in securing your future. That’s why we’ve compiled a list of our top UK wealth management firms, highlighting their key strengths and what sets them apart. Discover which one aligns best with your financial aspirations.

A good wealth manager combines technical expertise with the ability to deliver client-focused advice. They must understand 

, and portfolio construction, and then integrate these elements into a coherent strategy tailored to each client’s circumstances 

What is a Private Wealth Manager?

Equally important are communication and trust. The best wealth managers listen carefully to their clients, explain complex ideas in straightforward language, and build long-term relationships that extend across generations. This ability to foster confidence and clarity helps clients remain committed to their strategies through different market cycles 

How to choose a wealth manager

Transparency and accountability are also critical. A good wealth manager is clear about fees, explains how investment decisions are made, and ensures that all actions align with the client’s stated goals and 

 tolerance. Strong governance and ethical standards underpin this approach, giving clients the confidence that their interests always come first 

Dear CEO letter: FCA expectations of wealth management and stockbroking firms.

Finally, leading wealth managers offer a clear value proposition. They provide services that are designed for the specific needs of their target clients, whether that is high-net-worth families, 

, or institutional investors. This specialisation allows them to deliver bespoke planning, tailored portfolios, and innovative solutions such as sustainable investing or access to private markets 

Five Keys to Consistent Success in Wealth Management

For investors with £500,000 to £25 million in investable assets, wealth management rankings provide a valuable benchmark. They allow you to compare firms not only on assets under management (AUM) and scale, but also on reputation, service quality, and investment approach. Rankings highlight which firms are best equipped to manage complex portfolios, which specialise in bespoke advice, and how each positions itself within the competitive UK market. As the 

 notes, wealth managers increasingly compete on scale, reputation and client differentiation, underscoring why rankings offer meaningful context to investors 

Wall Street is racing to manage your wealth. That is a good thing.

How to Use Wealth Management Rankings Effectively

Wealth management rankings should be used as a guide to narrow the field, not as a definitive verdict. They provide an objective way to compare firms on scale, reputation, and service quality, helping investors identify which are best suited to complex portfolios or bespoke advice. The key is to align these insights with your personal goals, ensuring that the firms you consider reflect your risk appetite, investment horizon, and long-term priorities.

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" button to get started and check out our 5* reviews from Trustpilot.

 – Firms such as James Hambro & Partners, Saltus, and Evelyn Partners feature among the best wealth managers UK, recognised for strong client service and consistent portfolio results.

 – The leading wealth management firms collectively oversee significant AUM, demonstrating financial strength, resilience, and the scale to support high-net-worth clients.

 – Top firms provide bespoke strategies across investment management, tax planning, and estate structuring to help clients protect and grow wealth across generations.

 – Many of the best wealth managers combine international investment expertise with local insight, offering diversified opportunities across markets.

 – Established names in the rankings are known for long-standing reputations, governance standards, and multi-generational relationships with clients.

 – The top wealth management firms in London and across the UK integrate ESG, alternatives, and diversified portfolios to deliver sustainable long-term growth.

This article ranks the top ten wealth management firms in the UK in 2025, highlighting their scale, client service, and long-term expertise.

The ranking compares firms across assets under management, minimum investment requirements, and bespoke services, offering investors insight into the diversity and strengths of the UK wealth management industry.
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It reflects strategies focused on integrated financial planning, personalised investment advice, and the ability to balance global capabilities with local market knowledge.
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The article is not about finding a single “best” firm, but about providing context on how leading wealth managers operate — a useful benchmark when selecting the right partner for your wealth.

Top Ten Wealth Management Firms in the UK

, 84% of parents help their adult children buy property, making the "Bank of Mum and Dad"

. However, if you are planning to help your children with the purchase of their first property, you should know in advance what benefits and consequences this

How the Bank of Mum and Dad reshaped the British economy

It was believed that many young people find it challenging to pay the cash deposit due to the rising cost of living, 

, and the high cost of real estate. However, a 

 Bank of Family Report shows that financial support from family members is expected to help fund nearly half of home purchases from buyers under the age of 55 this year. In the report, it is estimated that financial aid from families will support 318,400 UK property purchases by 2023, up from 225,400 in 2019.

Even adults in their 20s or 30s are seeking help from their families. Additionally, individuals who are 55 years old and purchasing their first home are also requesting financial aid from their parents. 

Another recent report from Legal and General reveals that the “Bank of Mum and Dad” now contributes to 26% of funds to the UK housing market, with parents giving the amount for that first payment as either a gift (57%), a no-interest loan (18.3%) or one with interest (4.8%) 

The Bank of Family

The bank of mum and dad grew to prominence in the last decade, particularly due to the difficulties the current generation has to save large amounts of money compared to that of their parents. Sure enough, the “baby boomer” generation has done very well, having become a very wealthy generation due not only to profits from things like the defined 

 salary scheme and house price increases in the past decades, for instance, but also from working hard and living frugally 

Wealth and welfare across generations

It is important to keep in mind that the current life expectancy in the UK is 80.9 years, meaning that the children of someone who passes after 80 are probably around 55, which is also the average age of inheritance according to the 

. At the same time, while one study from the ONS showed that adults in the UK expect to receive an inheritance of £132,000, the current average inheritance in the UK is around £11,000. Since many may need financial help before the inheritance age or may require a larger sum, considering gifting part of the inheritance earlier might be a great way to give them the support they need, and also avoid some 

There are several different ways in which parents can help, so it’s important to consider the advantages and disadvantages of each and take steps to avoid any misunderstandings that could cause family rifts.

The simplest and most common way for parents to help their children to buy a home is to give them the deposit money as a gift. The offspring can then arrange a mortgage knowing that the deposit is in place.

However, one of the most common issues that crop up when helping children out with their deposit is whether the money was in fact a gift or a loan. A gifted deposit must come with no obligation to repay the money. Misunderstandings over money can cause irreparable harm within a family, so it’s essential to communicate at every stage of the process, and wherever possible, to put the terms of any agreement in writing 

How intra-generational transfers disrupt inter-generational strategies

Be aware of inheritance tax rules on gifts

To avoid paying inheritance tax, make sure you understand the 

 implications of giving money to your children. There are strict limits to the amount of money you can give away as gifts to your inheritors, as making gifts reduces the potential inheritance tax due on your estate 

How Inheritance Tax works: thresholds, rules and allowances

The IHT applies not only to cash but also to other assets, like cars and wedding gifts, so inform yourself about the limitations and the rules before deciding how you want to execute that gift.

As a rule, large sums of money gifted to a beneficiary takes seven years before it falls outside of your taxable estate. In other words, should you die within seven years of gifting the deposit, the gift could still be subject to inheritance tax, which your child will have to pay. This is just another good reason why you should keep written records of when the gift was made (so that 

 can determine when the seven-year clock begins), and that your financial adviser or 

For those parents who feel uncomfortable with making a gift that won’t ever be repaid, lending the money is the second most popular option. Once again, it’s important to be very clear about the assistance that the “bank of mum and dad” is prepared to give. 

If you’re offering a loan, you should clearly set out the loan repayment schedule, the repayment amounts, and the interest rate (if any) you expect your child to pay on top of the loan.

Of course, you can always choose to ‘write off’ the loan at a later date, or arrange for the loan amount to be deducted from their inheritance.

Traditional mortgage brokers don’t really like the idea of potential customers borrowing money to fund their deposits, even if it is coming from the bank of mum and dad. From their perspective, this parental support should be considered as a loan on the mortgage application.

Some lenders won’t accept a mortgage application if it shows the borrower owes a large sum to their parents that needs to be repaid on top of their mortgage repayments. Those mortgage lenders that do allow borrowers to have other loans on their application may offer a smaller mortgage amount or higher borrowing costs. 

So, it is important that you factor all of these issues in before drawing up a loan agreement for your child to sign.

If neither of these options sounds appealing, or if you don’t have spare cash for a deposit, you might consider being named as the guarantor or co-signer on your adult child’s mortgage. This guarantee helps borrowers who may not have enough money to buy a property. They can borrow up to 100% of the property's value.

But signing on as mortgage guarantor is a big step, as should the buyer default on their mortgage repayments, you would be required to step in and, in the worst-case scenario, your own home would be at risk.

Another option for parents to explore is to apply for a joint mortgage on the property alongside their offspring. This is often used as a way to help children buy a more expensive property than they could afford on their own, as their parents’ earnings will also be taken into account by the lender when assessing affordability.

However, this is usually only an option where the parents are still working and earning a regular income. New mortgage rules may prevent some older parents from being able to get another mortgage. If the home is considered a second property, there may also be stamp duty implications.

Finally, parents also need to bear in mind that being named on a joint mortgage could affect their credit score, and affect their ability to get credit in the future, especially if their adult child has a poor credit history.

The need for the bank of mum and dad isn’t going away any time soon. Offering financial assistance to your children can be an invaluable way of helping to set your children up for the future. But if you’re prepared to become a banking facility, you should make sure you do it as professionally as possible.

Like a bank keeping financial records, you should keep important documents to resolve disputes with your family or HMRC. This ensures that you are clear about your intentions and that everyone knows where they stand.

Before you make any promises to your children, we suggest you talk to an experienced and qualified professional to make sure raiding pensions and cash savings don’t leave you struggling to meet your own financial needs in the future. A financial adviser will be able to guide you through all these options, helping you choose the best one for you and your family. 

 – Around 1 in 4 first-time buyers now rely on parental funding, showing how the Bank of Mum and Dad shapes UK property purchases.

 – Gifting deposits remains the most straightforward route, but proper documentation is essential to manage inheritance tax and avoid disputes.

 – Lending money to children should involve written agreements to clarify repayment terms and safeguard both sides.

 – Acting as a guarantor can boost borrowing power, but parents risk liability if children default on repayments.

 – Joint mortgages increase affordability but may trigger higher stamp duty, affect credit profiles, and restrict future borrowing.

 – Financial and wealth management guidance ensures support strategies balance children’s needs with parents’ long-term wealth protection.

Helping children to buy property

Head of content writing at Compare Wealth Managers.

Mariel Diez

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Articles from author

VAT to Hit UK Private School Fees from January 2025: What It Means for Parents

Top Ten Wealth Management Firms in the UK

Helping children to buy property

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Mariel Diez

Bio

Articles from author

VAT to Hit UK Private School Fees from January 2025: What It Means for Parents

Top Ten Wealth Management Firms in the UK

Helping children to buy property

Start your journey to your Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Start your journey to your
Financial well-being