Adviser sentiment and expectations for Budget tax changes

Advisers are virtually unanimous that tax rises are on their way in this year’s Budget, with Employee National Insurance and Corporation Tax increases most likely, according to new research¹ from Downing.

In the survey of UK financial advisers and wealth managers, 99% expect taxes to rise in next month’s Budget but are split on which taxes will increase.

Employee National Insurance and Corporation Tax lead advisers’ concerns

Nearly seven out of ten (69%) predict an increase in Employee National Insurance, while around two-thirds (64%) expect to see a rise in Corporation Tax.

About six out of ten (57%) expect VAT rates to rise, while less than two out of five (38%) believe the Chancellor of the Exchequer will increase Income Tax rates.

The study found around a fifth (18%) expect rises in Inheritance Tax (IHT) while just 8% believe stamp duty on property will be increased.

Mark Dunn, Head of Retail Sales at Downing says:

“What we are seeing is a clear signal that advisers anticipate further tax changes in the Budget. 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.”

Preparing client portfolios for potential tax rises with Downing’s estate planning solutions

Downing recently launched the Downing Growth Estate Planning Service, which aims to provide IHT relief after two years, if held at the date of death, and targets returns of 5% to 7% each year. The Service could be attractive to younger investors with a longer investment horizon, who, following the Pension Reforms announced in last year's Budget, will now potentially face an IHT liability. Investors will also benefit from Wealth Guard, built-in downside protection that is unique to Downing’s estate planning suite. Wealth Guard covers a fall in value of up to 20% of the net initial investment, at no extra cost to investors.²

The Service offers higher-return potential within BR-qualifying asset-backed businesses, managed by an experienced investment team overseeing £1.2 billion across Downing’s estate planning services.  

Fund out more about the Downing IHT services.

Sources:

¹ Downing commissioned independent research company PureProfile to interview 100 UK financial advisers and wealth managers using an online methodology during August 2025.

² Up to the age of 90 years, covers up to £750,000. T&Cs apply, see policy for full details.

Important notice

This article has been approved and issued as a financial promotion.  Capital is at risk. Downing is a trading name of Downing LLP. Any personal opinions expressed are the views of the Downing representative at the time of publication and are subject to change and should not be interpreted as advice. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). Registered in England and Wales (No. OC341575). Registered Office: 10 Lower Thames Street London EC3R 6AF.