Advisers unanimously agree that tax rises will be announced in this year’s Budget, although they are split on which taxes will rise, says Downing.
According to the investment manager, 99% of advisers expect taxes to rise in the Autumn Budget, with nearly seven out of 10 (69%) predicting an increase in employee national insurance.
Meanwhile, two thirds (64%) also expect to see a rise in corporation tax.
However, 57% expect VAT rates to rise, despite Labour’s pledge not to increase this tax, while 38% believe the Chancellor will increase income tax rates.
Additionally, a fifth (18%) of advisers believe the Government will raise inheritance tax, and 8% anticipate changes to stamp duty on property.
Mark Dunn, head of retail sales at Downing, said: “What we are seeing is a clear signal that advisers anticipate further tax changes in the Budget. The challenge now is not simply predicting these changes, but ensuring financial plans and portfolios are well-positioned to adapt.
“That’s where we believe tax-efficient and growth-focused investment strategies can play an important role. The consensus around rising taxes reflects a wider shift in sentiment that advisers are increasingly aware that fiscal policy is likely to become more challenging.
“In this kind of environment, we believe robust, tax-efficient investment strategies will be key to maintaining clients’ after-tax returns and supporting their long-term financial goals.”
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