Advisers swamped with queries as Reeves' tax overhaul takes effect ahead of Healey Budget
Financial advisers are fielding a surge of client questions after Rachel Reeves' final Budget introduced inheritance-tax changes and pension reforms, while John Healey prepares his own budget.
Advisers across the UK are experiencing a wave of client contacts after Finance Minister Rachel Reeves delivered her final Budget, which overhauls inheritance tax by pulling pensions into its scope and is forecast to bring in £1.5 bn each year by 2030. The Personal Investment Management & Financial Advice Association says two-thirds of firms have seen a rise in inheritance-tax and estate-planning queries, while almost 60 % report more pension-tax questions after Reeves capped salary-sacrifice contributions and froze national-insurance and income-tax thresholds, measures expected to raise £7 bn annually.
Industry experts warn the changes make wealth-transfer planning far more complex for ordinary households. As John Healey prepares his own budget, he is reported to consider shielding low-income retirees from income-tax on state pensions, cutting the cash ISA allowance to £12 000, and possibly taxing business succession transfers, all of which could further affect advisers' clients. The combined tax reforms are set to increase the overall tax burden on families, prompting a scramble for professional advice.
Why it matters
The new tax rules will increase household tax liabilities and create demand for financial advice, affecting many UK families.
How this story developed
- Oct 18 Rural councils urge Chancellor John Healey to address £19bn growth gap in upcoming Budget
- Oct 23 Antonia Medlicott’s budgeting and tax guidance has entered the discussion ahead of the Budget.
- Oct 25 Healey scheduled an early budget for 28 October that is expected to include a £70 billion borrowing increase and a mix of tax and spending measures.
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