The UK remains an attractive jurisdiction for family offices despite a ‘very challenging’ economic backdrop and tax landscape, according to a report from Agreus Group and KPMG.

The report, which surveyed family office professionals from around the world, stated that the UK retained its appeal due to its political stability and strong legal system.

In particular, London offered access to top-tier advisers, investment opportunities, deal flow and global connectivity, Agreus Group and KPMG noted.

It also retained favour due to its strong financial ecosystem, trusted legal and regulatory framework, and high-quality lifestyle and education.

However, the report highlighted that recent tax reforms and their effect on non-domiciled family office clients had resulted in a migration of wealth creators away from the UK.

Despite this, family offices were found to be retaining a ‘significant footprint’ in the UK, if not staying anchored to the country.

“Although there have been significant UK tax changes over recent years, the UK remains an attractive location for family offices with London as a nexus for many international families,” said KPMG partner and head, family office and private client in the UK, Nick Pheasey.

“We have also seen an increased adoption of the family office model across the wider UK regions with many UK-based families seeking increased transparency and control over their financial, legal and tax affairs.”

CFO/COO of a private UK single family office, Andrew Layton-Hoang, added: “Regarding the appeal of the UK as a jurisdiction for family offices, there is no doubt that both the economic backdrop and tax landscape are very challenging for family offices in the short term, however, I believe the UK will continue to be attractive in the mid-long term as the legal system is well-established, stable, and transparent.

“Additionally, there is great depth in the family office talent pool, and professional service providers here are top tier.”

Globally, respondents were asked what they viewed as the purposes of a family office, with 68 per cent citing the administration of the family’s wealth.

While this remained the most popular answer, there was an increase in respondents citing wealth preservation as a key function of family offices.

“While wealth administration was the most stated objective in our previous report, the 2025 responses show a clear pivot toward wealth preservation,” the report stated.

“This change signals a more strategic, long-term mindset, as families focus on safeguarding their capital for future generations rather than simply managing its day-to-day deployment.

“Intuitively, this makes sense as the family office market as we see it today matures along with many of the principals and founders who created the family office.”

More than two-thirds (67 per cent) pointed towards wealth preservation as a key purpose of family offices, while 66 per cent cited risk-adjusted growth, and 33 per cent highlighted philanthropic initiative.

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