New research from Opinium has unveiled growing uncertainty ahead of the Autumn Budget is already reshaping client behaviour, with a majority of independent financial advisers (IFAs) reporting pre-emptive financial moves driven by fears over possible tax changes.
Three in five IFAs (58%) said clients have withdrawn money from pension lump sums amid speculation that the Chancellor may reform pension tax relief.
One in 10 advisers (11%) also reported that some clients are planning to delay retirement due to the same concerns.
A quarter of IFAs (26%) said clients have begun selling private rental properties, reflecting widespread rumours that rental income could be made subject to National Insurance (NI).
A similar proportion (24%) reported clients bringing forward planned disposals, while 22% have seen clients crystallising unrealised gains or losses ahead of a potentially significant shift in the tax system.
Nearly one in five advisers (18%) said clients have delayed major transactions (including home purchases) and 17% reported an increase in clients stockpiling cash.
One in 10 (9%) said they have clients who have moved assets offshore or abroad as speculation intensifies.
The research also pointed to widespread anxiety about what the Chancellor could unveil.
More than three quarters of IFAs (77%) reported client concerns regarding changes to pension tax relief, and two thirds (64%) said clients have raised questions about the introduction of a wealth tax.
Over half of advisers said their clients are worried about potential Capital Gains Tax (CGT) on primary residences (54%), NI on rental income (55%) and an increase in the basic rate of Income Tax (53%).
James Endersby, CEO of Opinium, said: “Our research highlights the degree to which Budget speculation is already influencing financial behaviour.
“With rumours of major tax changes growing, many IFAs are seeing clients act pre-emptively, from drawing down pension lump sums to offloading rental properties.
“This level of activity underscores the deep uncertainty about what the Chancellor may announce in the Budget.
“While we don’t yet know how much of the speculation will be borne out, the impact is already being felt in people’s financial behaviour.”
