Nearly eight in ten (78%) people said uncertainty around future tax changes is taking a toll on their financial planning and investment decisions.
Of the 267 customers surveyed by Quilter, only 18% said it hasn’t had an impact.
Nearly half (48%) said they would prefer any future tax rises to come through explicit rate changes, rather than stealthier measures such as extending frozen thresholds or reducing allowances.
Inheritance tax (IHT) and income tax are causing the greatest concern, at 46% and 41%, respectively.
“Many are trying to make long-term decisions in an environment where the rules could change with little notice,” said Rachel Griffin, tax and financial planning expert at Quilter.
“That makes the role of professional advice even more vital in helping people stay focused on their goals rather than reacting to every headline.
“These findings underline just how sensitive financial planning has become to the constant swirl of Budget speculation. People crave stability and clear communication, but the cycle of rumour and reform is fuelling anxiety and indecision.”
Chancellor’s pre-Budget speech ‘lays groundwork’ for tax rises
Quilter also found that if the government were to reduce or remove the tax benefits of salary sacrifice arrangements when it comes to pensions, 19% would contribute less and one in four (25%) would stop using it altogether.
Overall, 46% opposed aligning capital gains tax with income tax rates, while the same proportion resisted replacing the current seven-year inheritance gifting rule with a lifetime cap on tax-free gifts.
Griffin added: “This Budget is an opportunity to move from firefighting to futureproofing. The chancellor should prioritise fairness, simplicity and predictability, not short-term fixes.
“That means considering long-term reforms such as establishing an independent Tax Policy Commission to embed rigour and consultation into policymaking.
“By focusing on stability and simplicity, the government can help people plan with confidence and ensure the tax system supports, rather than hinders, long-term financial wellbeing.”
