- Investors fear fresh assault on assets
- Many believe tax increases on investments will continue
- Tax attack increases the importance of financial planning and making maximum use of tax shelters
- AJ Bell has campaigned for pension tax stability to ensure that key tax incentives underpinning long-term retirement planning are kept in place
Investors remain concerned about the likelihood of further tax rises targeting long-term investments and assets, according to a survey of AJ Bell customers*.
Surveyed after the Budget, 79% of respondents said they were worried about further tax hikes targeting private wealth. Over a third (38%) said they were very worried while a further 41% have some concerns about further tax rises targeting assets and investments.
Despite the fact government has already moved to increase rates of CGT, dividend tax and income tax rates on property and savings income, the figures show investors fear the tax raid isn’t over.
Those tax rises come in addition to curbs on existing tax breaks, including reducing the cash ISA allowance to £12,000 from 2027 and pledging to limit pension salary sacrifice to the first £2,000 of income from 2029.
The government has also extended the freeze on the IHT nil rate band, as well as scaling back business and agricultural property reliefs. It also plans to introduce a new charge on high value properties from 2028.
AJ Bell has called on the government to provide tax certainty for investors, with a particular focus on the importance of a long-term commitment to pension tax stability through a Pension Tax Lock.
AJ Bell senior pensions and savings expert, Charlene Young, says:
“Although Rachel Reeves just about managed to dance around Labour’s manifesto pledges on income tax, she couldn’t resist coming back for a second helping of tax rises in November’s ‘smorgasbord’ Budget. Unsurprisingly, together with leaks and rumours in the lead up, this has dented retail investors’ faith in the government, with 8 in 10 fearing yet more hikes to balance the books.
“The government must acknowledge that people need stability to confidently invest their hard-earned money for the long-term. Many of those who told us they feared further changes said they were ‘very concerned’, which is astonishing when you consider these are people who already invest.
“While policymakers choose to tinker around the edge of tax allowances at the expense of simplifying rules and fostering an investing culture, any talk about a retail investing revolution looks little more than a distant pipedream.”
*Source: AJ Bell. Based on an online survey of 1,726 AJ Bell customers carried out between 8 and 12 December 2025. Q: To what extent are you concerned about the possibility the government may further increase taxes on investments and assets (e.g. IHT, capital gains tax etc)?
