Uncertainty around future tax changes is taking a toll on financial confidence among consumers, a study from Quilter has indicated.

Research by the financial adviser and wealth manager found that over three quarters (78%) of people said it is affecting their financial planning or investment decisions to some degree.

Quilter’s survey, which quizzed 267 of its customers, revealed that one in three (33%) said tax uncertainty significantly impacts their decisions, while a further 45% said it affects them slightly. By comparison, only 18% said it has no impact at all.

The group’s findings come ahead of Chancellor Rachel Reeves’ Budget on 26 November which is expected to include a raft of tax changes. As part of Quilter’s findings, Inheritance Tax (46%) and Income Tax (41%) ranked as the taxes causing the greatest concern among respondents.

Tax and financial planning expert, Rachael Griffin, said the findings had underlined how “sensitive” financial planning has become amid speculation in the lead up to the Budget.

“People crave stability and clear communication, but the cycle of rumour and reform is fuelling anxiety and indecision,” said Griffin.

“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.”

Griffin also suggested that the upcoming Budget is an opportunity to move from “firefighting to futureproofing”.

“The Chancellor should prioritise fairness, simplicity and predictability, not short-term fixes,” she added.

“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.”

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