New research from interactive investor, the UK’s largest flat-fee investment platform for retail investors, reveals that leaving the pension tax system untouched tops investors’ wish lists ahead of the Autumn Budget 2026.
With new chancellor of the exchequer John Healey stepping up to the despatch box in around seven weeks’ time, speculation about the possible contents of the famous red box is starting to gather pace.
To find out more about what people would like to see on 28 October, interactive investor ran a poll* on ii Community; a space where interactive investor customers can share investment ideas and insights with others.
The results shine a bright light on the areas that matter most to investors. Clearly scarred by the recent seismic reforms to the retirement framework alongside the rampant and unsettling speculation before the previous two fiscal events, more than a third (36%) of respondents to the poll voted for the pension tax system to be left alone.
Reforming the increasingly complex inheritance tax framework and cutting stamp duty on UK shares were also popular with investors, with each receiving 19% of the vote.
Elsewhere, some 13% felt that support for businesses should be the government’s top priority, around one in 10 (9%) urged Healey to focus on simplifying the ISA landscape, while only 5% voted for policies to lift budding first-time buyers onto the property ladder.
ii Community poll: What would you most like to see in the Autumn Budget?
| Simpler ISA rules | 9% |
| Inheritance tax reform | 19% |
| Cut stamp duty on UK shares | 19% |
| Leave pension tax alone | 36% |
| Help for first-time buyers | 5% |
| Support for businesses | 13% |
Craig Rickman, personal finance expert, interactive investor, says: “It’s little surprise that investors desperately want the government to avoid making further changes to pension tax.
“Speculation about reform in this area ran wild before the past two budgets. And although some of the key rumours fortunately didn’t materialise, notably cuts to the tax-free cash element, the changes that were proposed, coupled with the weight of the pre-event reports, have understandably left a mark on investors.
“With most unused pension savings forming part of inheritance tax calculations from April 2027, and the salary sacrifice cap arriving two years later, there are concerns that further tightening to the retirement tax framework might be in train, with policymakers viewing pensions as low-hanging fruit when seeking to raise additional revenues.
“But investors need continuity and consistency in this area so they can plan in confidence. It’s unfair for people to make prudent decisions under the rules at the time, only to find down the line the rug’s been yanked out from under them.
“While reform is often necessary to keep pace with the UK’s retirement challenges as they evolve, any policy change must focus on encouraging people to build sufficient future wealth and help retirees make sensible decisions with the savings they’ve accumulated. Chipping away at the tax advantages of pensions risks having the opposite effect.
“With the rumour mill ahead of this year’s event beginning to shift through the gears, it’s crucial the government urgently provides clarity about its intentions for the future of pension taxation – otherwise there’s the very real risk of history repeating itself.
“Last year then-chancellor Rachel Reeves did move to rule out cuts to pension tax-free cash. But this was communicated only two weeks before budget day, which might’ve been a case of too little too late for savers who’d already reacted to the speculation and made irreversible decisions with their long-term wealth.”
Stop the stamp!
interactive investor has long campaigned on the need to remove stamp duty on UK shares and trusts, and this latest ii Community poll demonstrates that retail investors are well aware that this tax disincentivises the building of a thriving investment culture in the UK.
Commenting, Richard Wilson, Chief Executive, interactive investor, says: “Stamp duty on shares is a globally uncompetitive and irrational tax that cuts the value of UK companies, which is why the good ones who can leave go elsewhere, and the good ones that don’t leave get bought anyway. To make matters worse, the burden increasingly falls on retail investors.
“At a time when all policymakers want more people investing for the long-term and more capital flowing into UK companies, stamp duty has the diametrically opposite effect. It has to go.”
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