Independent financial advisers (IFAs) are increasingly concerned about tax changes, according to research and insight agency Opinium’s latest IFA Barometer, which tracks adviser views on the issues most affecting them and their clients.
Over a third (35%) of IFAs list tax changes as one of the biggest challenges they’re facing at the moment, a figure which has risen by 8 points since September 2024.
While tax matters are a growing challenge, it remains secondary to the burden of compliance and regulatory changes, with nearly three-quarters of IFAs (72%) citing this as their primary concern.
Other main challenges IFAs are facing include implementing consumer duty (31%), supporting clients through economic uncertainty (30%) and adopting AI (15%). Alexa Nightingale, Global Head of Financial Services research at Opinium, commented:
“It’s no surprise that tax challenges have risen in importance for IFAs since Rachel Reeves’ Budget. Not only are IFAs needing to help clients navigate the immediate and upcoming changes to the likes of capital gains tax, VAT on private schools and inheritance tax rules, but they have also had to work through tax changes that affect their own firms, such as employer NICs.
As IFAs grapple with these challenges, all eyes will be on Reeves for her Spring Forecast on March 26th, to see whether further tax changes should be anticipated in the year ahead.”
