Rathbones said other popular options include tax-advantaged private company investments such as Venture Capital Trusts (VCTs) and the Enterprise Investment Scheme (EIS).

A survey of 3,092 UK adults with investable assets of up to £2.5 million reveals that investment behaviour changes markedly once tax efficient savings options are exhausted, with wealthier investors far more likely to embrace complexity and risk in pursuit of higher returns.

Investment in buy-to-let property rises sharply with wealth, from just 4% among investors with £25,000–£250,000 of investable assets to 35% among those with more than £2.5 million.

However, Rathbones said buy-to-let was not a simple sector to invest in.

A Rathbones statement said: “While buy-to-let remains popular, its appeal has weakened. Our recent analysis finds that house prices have barely kept pace with inflation since 2016, while tax, regulatory changes and higher borrowing costs have eroded returns. Many buy-to-let investments are now less attractive on a risk adjusted basis, particularly where leverage is involved.”

Allocations to VCTs and EIS follow a similar trajectory as buy-to-let, increasing from 2% at the lower end of the wealth scale to 25% among the wealthiest respondents.

Rathbones senior investment director Isabella Galliers-Pratt said: “Once they’ve used ISA and pension allowances, the next question we hear from clients is: where does my next pound go? As wealth increases, investors are more willing and able to take on higher levels of risk. Greater financial resilience gives them the confidence to explore opportunities beyond mainstream wrappers.

“The right route depends on time horizon, risk tolerance and personal tax circumstances. It’s important to balance the understandable desire to shelter investments from tax with the risks involved. Paying tax isn’t a bad thing – it typically means your investments have performed well.”