Polling suggests the majority of Britons put protecting and improving public services, such as the NHS, ahead of concerns about increases in taxes
Thousands of people are seeking tax advice on how to shield their wealth from what is predicted to be one of the biggest tax-raising Budgets seen since the war.
Polling suggests the majority of Britons put protecting and improving public services, such as the NHS, ahead of concerns about increases in taxes.
However, the same polling shows that millions are simultaneously trying to limit their own tax liabilities, according to research by finance experts at Unbiased.
It said: “Demand for financial advice for many personal finance areas, including capital gains tax (CGT) and estate planning, soared since the General Election compared to the same period in 2023.
“There is also more demand for financial advice for accounting, tax planning, and pensions and retirement as thousands prepare for the Autumn Budget.”
It added: “On the consumer side, general tax planning, which can minimise tax liabilities and help avoid an unnecessary tax bill, has increased in popularity with demand soaring 72.5 percent. It also appears that people are thinking about how best to pass on their assets to loved ones in the run-up to the Autumn Budget, as estate planning enquiries have increased 70.3 percent.”
Potential changes to inheritance tax include removing exemptions that allow people to pass on pension pots, agricultural land and some types of shares free of IHT. New rules on how much people can give away free of tax in the years before they die are also a possibility.
There are also suggestions that the Capital Gains Tax (CGT) charged on gains made on shares, property and other assets could be increased to bring it into line with income tax. Currently, these gains are taxed at 20 percent, which compares to 40 per cent and 45 percent for the incomes of high earners.
Unbiased said the number of people seeking advice on CGT surged by 61.2 percent between July and mid-October this year compared to the same period in 2023.
It said: “Many people are also preparing for any potential changes to their pensions, as there has been intense speculation, particularly around changes to tax-free lump sums and whether pensions will be subject to IHT in the future.
“This speculation has prompted many savers to withdraw money from their pot, which is concerning as this can have a significant impact on their overall retirement plan and how long their money lasts during their golden years.”
Unbiased chief executive, Karen Barrett, said: “It’s clear that many people in the UK are worried about the upcoming Autumn Budget, which is unsurprising considering the extensive media speculation.
“With rumours swirling about changes to how much you can withdraw from your pension tax-free, possible capital gains tax rises and changes to inheritance tax, there’s a lot to digest. However, it’s important that you don’t act rashly and get expert financial advice to ensure you make the right decisions for your financial future.
“So, it’s reassuring to see that people are getting the expert guidance they need.”
