Wealth advisers are experiencing a surge in questions from affluent clients concerned about potential tax changes that could impact pensions, inheritance tax, and capital gains tax. This comes as speculation intensifies regarding announcements in next month's Autumn Budget.
A survey by Rathbones found that nearly 50 per cent of wealthy clients with at least £250,000 in assets are anxious about pension policy uncertainty, leading them to seek additional financial decision-making support. Furthermore, 58 per cent cited changes to tax rules affecting retirement income as a primary concern.
These rising fears coincide with increasing pressure on UK public finances, with government borrowing reaching £18.3bn in August. This figure represents a nearly 20 per cent rise compared to the previous year and is £3.5bn above official forecasts. Chancellor John Healey is facing increased speculation over how he might secure additional revenue.
The lack of leaks from the Treasury, unlike under Healey’s predecessor, has heightened uncertainty among taxpayers regarding which taxes might be increased. Advisers are preparing for a series of potential small changes across personal tax policy, which clients describe as a "death by a thousand cuts" rather than a single dramatic announcement.
Firms such as Royal London, Evelyn Partners, and St James’s Place are preparing their advisers to manage increased client inquiries and the looming changes to client portfolios in 2027, particularly concerning the inheritance tax regime shake-up in April 2027, which will bring pensions into its scope for the first time.