Independent financial advisers (IFAs) are reporting a sharp rise in client activity ahead of the upcoming Budget, with two-thirds saying that clients seeking to make changes before potential tax announcements is their biggest current challenge, according to research from Rathbones.
The study of 100 IFAs found that 91% have seen an increase in client queries, with nearly a third (31%) reporting a 26% to 50% rise and two-thirds (66%) seeing an increase of 11% to 25%.
The surge is being driven by concerns about possible changes to pensions and Inheritance Tax.
Advisers said clients are particularly focused on potential reversals to the pension lifetime allowance abolition (73%), drawing down pensions tax-efficiently (55%), and Inheritance Tax planning and gifting strategies (49%).
Passing on pensions to heirs was also cited by 49% of respondents.
Advisers highlighted three main challenges in managing client demand: explaining complex rules in simple terms (78%), keeping up with potential legislative changes (74%), and clients wanting to act before any changes are confirmed (68%).
Despite the uncertainty, 99% of advisers said they feel prepared for any major Budget announcements, with half saying they are “very prepared.”
A separate Rathbones survey of 460 high-net-worth clients found that 43% expect to seek inheritance and estate planning advice over the next year amid speculation around tax changes.
Faye Church, senior financial planning director at Rathbones, said: “These findings highlight the heightened anxiety among clients as they seek clarity and reassurance in an evolving financial landscape.
“While speculation around the pension lifetime allowance has been relatively muted, potential changes to the tax-free lump sum have dominated conversations.
“Advisers are working hard to provide clarity, but this surge in concern underlines the need for the Budget to deliver clear and timely guidance.”
