Changes to personal taxes in the last budget and speculation of further fiscal-raising measures in the next have led to “elevated” flows at Evelyn Partners, which has reported record assets under management during the first half of the year.

The wealth manager posted assets of £64.6 billion in the first half of the year compared with £62 billion a year earlier after net flows of £692 million, up 62.1 per cent year-on-year.

Paul Geddes, chief executive of Evelyn Partners, said: “The first six months of the year saw gross inflows of £3.7 billion. Outflows, however, were also elevated reflecting the challenges faced by clients, including paying tax bills, reducing mortgages and gifting to reduce inheritance tax liabilities; but we did see a reduction in outflows in the second quarter compared to the prior quarter.”

Geddes said the changes to personal taxation announced in the chancellor’s October budget, including the planned inclusion of unspent pension assets within the scope of inheritance tax from April 2027, “continue to be key areas of discussion with clients”.

He added: “With speculation mounting about further tax-raising measures, there are high levels of engagement across new and existing clients and strong growth.”

Evelyn, which traces its roots to the old Tilney brand founded in Liverpool in 1836, is one of the leading five wealth managers in the UK. The firm has generated net inflows every quarter since it was created from the merger of Tilney and Smith & Williamson in 2020.

The update for the six months to the end of June comes amid the prospect of a £2 billion-plus sale.

Evelyn’s existing owners, Permira and Warburg Pincus, the private equity groups, have appointed Evercore, the investment bank, to handle a possible auction of the group, the Financial Times reported this month.

Potential bidders for the business are believed to include NatWest, Royal Bank of Canada, the US-based Raymond James group and the Ontario Teachers’ Pension Plan.

Plans for a flotation in London appear to have been downgraded and a sale to a trade buyer or single institutional investor are seen as the preferred options, in spite of a pick-up in share market sentiment.

Evelyn has already sold its Smith & Williamson professional services division and its fund administration arm.

Permira has owned Evelyn since 2014 and Warburg Pincus became a shareholder in 2020 when Smith & Williamson was merged into the business.