7 November 2025
Eight in ten savers say tax uncertainty is hurting their financial planning
The uncertainty around future tax changes is taking a toll on financial confidence. Nearly eight in ten people (78%) said it affects their financial planning or investment decisions to some degree, according to a new survey by Quilter, the wealth manager and financial adviser.
In the survey of 267 Quilter customers, conducted in October 2025, found that one in three (33%) say tax uncertainty significantly impacts their decisions, while a further 45% said it affects them slightly. Only 18% said it has no impact at all. The findings come ahead of a highly anticipated budget expected to include a raft of tax changes.
Meanwhile, Inheritance Tax (46%) and Income Tax (41%) ranked as the taxes causing the greatest concern among respondents. Following Rachel Reeves’ unusual pre-budget speech this fear may now be heightened further.
Despite the complexity of the tax policy landscape, there was a clear message about the need for transparency. Nearly half (48%) said they would prefer any future tax rises to come through explicit rate changes, rather than stealthier measures like extending frozen thresholds or reducing allowances.
The survey also highlights the risk of behavioural shifts if current tax incentives are altered. If the government were to reduce or remove the tax benefits of salary sacrifice arrangements when it comes to pensions, one in four respondents (25%) said they would stop using it altogether, while nearly one in five (19%) said they would contribute less.
Views were similarly divided on other potential reforms. Almost half (46%) opposed aligning Capital Gains Tax with Income Tax rates, while the same proportion resisted replacing the current seven-year inheritance gifting rule with a lifetime cap on tax-free gifts.
Rachael Griffin, tax and financial planning expert said:
“These findings underline just how sensitive financial planning has become to the constant swirl of budget speculation. People crave stability and clear communication, but the cycle of rumour and reform is fuelling anxiety and indecision.
“The fact that nearly eight in ten people say tax uncertainty is influencing their investment or other financial planning shows just how important clarity has become. Many are trying to make long-term decisions in an environment where the rules could change with little notice. That makes the role of professional advice even more vital in helping people stay focused on their goals rather than reacting to every headline.
“This Budget is an opportunity to move from firefighting to futureproofing. The Chancellor should prioritise fairness, simplicity and predictability, not short-term fixes. That means considering long-term reforms such as establishing an independent Tax Policy Commission to embed rigour and consultation into policymaking, modernising outdated gifting rules to support intergenerational wealth transfer, and developing a sustainable alternative to the triple lock to protect both retirees and the public finances.
“By focusing on stability and simplicity, the government can help people plan with confidence and ensure the tax system supports, rather than hinders, long-term financial wellbeing.”
