Budget speculation driving more people to seek financial advice

Concerns about the impact of tax changes in the October 30th Budget is driving more people to seek out financial advice, according to new research from investment manager, Rathbones.

Its study found around one in seven (15%) adults have consulted or plan to consult a financial adviser as a direct result of speculation about the first Budget from Chancellor Rachel Reeves.

Top of the agenda among those who have consulted or plan to consult a financial adviser is selling investments to avoid any potential changes to capital gains tax (CGT). More than a third (35%) said they are concerned about possible changes to CGT to bring it in line with income tax rates.

More than a quarter (27%) are consulting or planning to consult advisers about rebalancing or diversifying their investment portfolios, while the same number are looking at switching investments into cash.

Other key concerns include setting up trusts ahead of possible changes to inheritance tax, which are being considered by 18%, while 16% are looking at paying off mortgages earlier than they had originally planned so that they can free up income.

Around one in seven (14%) who have consulted or plan to consult a financial adviser will ask about selling or closing their business and 13% will ask about selling some of their buy-to-let properties.

The study found high levels of concern about the Budget – a third (33%) say they are very concerned about the impact of personal tax changes or increases in the Budget, while 47% are quite concerned. A fifth (20%) say they are unconcerned.

Faye Church, senior financial planning director at Rathbones Group, said: “Speculation has been rife about measures that will be announced in the Budget with people becoming increasingly concerned about the impact on their investments.

“This speculation has resulted in more people consulting or planning to consult a financial adviser, with investments top of the agenda. The decisions people make could have a profound impact on the quality of their life in retirement in the short, medium and long-term, so it’s imperative not to be hasty and to plan properly.”