The Personal Investment Management & Financial Advice Association (PIMFA) has urged the Government to focus on long-term stability, fairness, and consistency for savers and investors in next month’s Autumn Budget.
PIMFA said ongoing speculation over potential tax changes – including possible adjustments to pension tax-free allowances and the ISA regime – is undermining consumer confidence and influencing financial behaviour.
The trade body, which represents wealth managers and financial advisers across the UK, is calling for two key measures to restore confidence and predictability: a pension tax lock to safeguard current levels of tax relief and tax-free withdrawal, and a personal taxation roadmap to set out the Government’s long-term approach to investment taxation.
PIMFA also raised concerns over the uneven treatment of AIM shares following changes in the last Budget, which limited business relief on AIM investments to 50% of the standard Inheritance Tax (IHT) rate, while unlisted portfolios retained full relief up to £1m.
The association said this has led to significant outflows from AIM and called for consistent treatment across business relief schemes to support investor confidence.
In addition, PIMFA reiterated its opposition to proposed IHT changes affecting unused pensions, warning that the draft legislation could expose consumers to greater risk and remains structurally flawed.
It also cautioned against speculative reforms to the ISA framework, such as capping Cash ISAs or restricting tax relief to UK-only investments, warning that such changes would increase complexity, confuse consumers and deter investment.
Simon Harrington, head of public affairs at PIMFA, said: “We recognise the difficult decisions that the Chancellor needs to make ahead of the forthcoming Budget.
“But, in delivering sound, public finances, the Government also needs to be aware of its wider mission to deliver economic growth through the welcome reforms it has introduced over the past year to encourage further investment.
“To deliver on this mission, we once again urge the Government to prioritise stability in light of the substantive changes it made only 12 months ago.”
He added: “The Government must provide certainty around how wealth will be treated for the long-term – not just at the point of savings or investing, but also when it is withdrawn in later life.
“Speculative debate about future tax changes – particularly those affecting pensions – has a measurable, lasting and negative impact.
“To address negative speculation and encourage long term investor confidence the Government needs to provide a commitment and long term roadmap to its approach to pensions and investment taxation at this Budget.
“Businesses and consumers value stability above all else, and we urge the Government to focus on commitments that create the conditions for savers and investors to thrive.”
