Advisers are “virtually unanimous” that tax rises are on their way, according to new research from investment manager Downing.
Downing’s survey of UK financial advisers and wealth managers found that 99% expect taxes to rise in next month’s Budget but are split on which will increase.
Nearly seven out of ten (69%) predict an increase in employee National Insurance, while around two-thirds (64%) expect to see a rise in Corporation Tax.
About six out of ten (57%) expect VAT rates to rise, while less than two out of five (38%) believe the chancellor will increase income tax rates.
The study from Downing, which manages a suite of estate planning solutions catering for differing client needs, found around a fifth (18%) expect rises in inheritance tax (IHT) while just 8% believe stamp duty on property will be increased.
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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.”
