Two-thirds of financial advice firms have seen an increase in enquiries about inheritance tax (IHT) and estate planning ahead of the Autumn Budget, research from the Personal Investment Management & Financial Advice Association (PIMFA) has found.

The survey found that 66% of firms had received more enquiries about IHT and estate planning, while 58% reported increased demand for advice on pension taxation, as clients seek to protect their wealth amid uncertainty over potential tax changes. A further 30% had seen more enquiries about ISAs and savings, and 27% reported greater interest in the possibility of a wealth tax.

Budget speculation is already influencing financial decisions, with 53% of firms saying clients had brought forward planned gifts or transfers of family wealth. Meanwhile, 44% reported clients taking tax-free cash from their pensions, 45% had seen clients increase or maximise ISA contributions, and 40% said clients were moving investments into tax-efficient wrappers.

Advice firms also called for greater long-term certainty over personal taxation. In the survey, 70% identified IHT as an area most in need of greater predictability, closely followed by pension tax rules at 69% and ISA rules and allowances at 62%. Capital gains tax (CGT), which has reportedly been ruled out for an increase, has also identified by more than a third, at 37%.

David Ostojitsch, director of government relations and policy at PIMFA, said: “These findings show that speculation about potential tax changes continues to have an impact. In line with previous Budget exercises, clients are seeking advice and bringing forward financial decisions before we know what the Budget will contain.

“Recent changes, including bringing unused pension funds into the scope of inheritance tax, have understandably left people concerned about what might come next. Ahead of each Budget, speculation about pensions, tax-free cash and inheritance tax can prompt people to make significant financial decisions simply to get ahead of changes that may never happen.”

PIMFA has called on the Government to introduce a pensions tax lock, committing not to announce or consult on substantive changes to pension taxation, alongside a longer-term roadmap for personal investment taxation.

---