Almost all (99 per cent) wealth managers and financial advisers are expecting tax rises in the Budget next month, with employee national insurance and corporation tax increases the most likely, according to research from Downing.

The investment manager’s survey of UK financial advisers and wealth managers found that while they were virtually unanimous in expecting tax rises on the horizon, they were split on which taxes will increase.

More than two thirds (69 per cent) were anticipating an increase in employee national insurance, while 64 per cent expected to see a rise in corporation tax.

Nearly six in 10 (57 per cent) expected VAT rates to increase and 38 per cent believed the government would look to raise income tax rates.

Downing also found that 18 per cent anticipated rises in inheritance tax (IHT), while 8 per cent believed stamp duty on property will be increased.

“What we are seeing is a clear signal that advisers anticipate further tax changes in the Budget,” said Downing head of retail sales, Mark Dunn.

“The challenge now is not simply predicting these changes, but ensuring financial plans and portfolios are well-positioned to adapt. That’s where we believe tax-efficient and growth-focused investment strategies can play an important role.

"The consensus around rising taxes reflects a wider shift in sentiment that advisers are increasingly aware that fiscal policy is likely to become more challenging.

“In this kind of environment, we believe robust, tax-efficient investment strategies will be key to maintaining clients' after-tax returns and supporting their long-term financial goals.”

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