Wealth management and accountancy business Evelyn Partners has warned that its clients have been fretting over the raft of speculation coming out about next week’s Budget.
Rumours about the contents of the Budget have been flying out of Westminster, with concerns that the Chancellor Rachel Reeves may move to hike a variety of taxes and make changes to the financial system.
Capital gains tax has been a primary concern, with speculation that it may be hiked from 20-25 per cent to as high as 39 per cent, while shifts in inheritance tax have also been on the minds of savers.
A host of asset managers have reported a decline in new money coming in during the last quarter as uncertainty over the fiscal event has caused investors to keep their money in cash rather than risk putting it in a volatile stock market.
The latest to do so, is Evelyn Partners.
“Speculation about tax rises and potential changes to pensions in the new government’s upcoming Budget on 30 October has seen very high levels of engagement with clients,” said Evelyn Partners chief executive Paul Geddes.
“While it is unclear at this stage precisely what changes will emerge, as an advice-led business we believe that this will present an opportunity to support even more clients with expert financial planning alongside the management of their investment portfolios, as well as tax advice for both businesses and private clients.”
What did Evelyn Partners’ results show?
In Evelyn Partners’ quarterly trading update today, it reported that assets under management and advice had climbed to a record high of £62.7bn, 12.8 per cent higher than a year ago.
New money coming into the wealth manager dipped from £600m to £200m thanks to a £353m withdrawal relating to one-off discontinuation of a legacy execution-only service.
Group operating income was boosted in the quarter to £181.8m, 11 per cent of last year, while over the last nine months it totalled £542.6m.
“We’re pleased with this positive third quarter performance, with clear growth across each of our three divisions: Financial Services, Professional Services and Fund Solutions,” added Geddes.