Investment - Articles - Three positive moves for the Autumn Budget

"Yet there are several positive steps the Chancellor could take to provide stability and clarity for savers and investors. What’s more, these measures are not outside the realms of possibility. Here are three straightforward moves that would strengthen the UK's investment landscape and help restore confidence."

"That, in turn, could support company valuations, lower the cost of capital and improve businesses' ability to raise money for expansion and innovation. It would also help make London a more competitive destination for listings at a time when the market is struggling to attract and retain companies. The cadence of UK IPOs has endured a prolonged period of weakness despite strongly rising global stock markets amid a tech and AI boom.

"More broadly, removing stamp duty would strengthen the UK's attractiveness as a destination for investment, reinforce London's position as a global financial centre and support the wider City ecosystem that sustains hundreds of thousands of jobs.

"Rachel Reeves' decision last year to introduce a three-year SDRT holiday for newly listed companies amounted to an implicit acknowledgement that the tax can act as a drag on liquidity and valuations. If removing SDRT is considered beneficial for newly listed companies, there is a strong case for applying the same logic across the wider UK equity market."

"In reality, savers and investors are already experiencing a gradual erosion of tax advantages without the need for further reform. Key allowances are frozen rather than increasing with inflation, steadily reducing their value in real terms. The £20,000 ISA allowance becomes less generous each year, while the tax-free pension lump sum, capped at £268,275 for most individuals, is also being eroded by inflation. Pension contribution limits have similarly failed to keep pace with rising prices, meaning headline allowances today are typically worth significantly less than when they were first introduced.

"A period of stability would also allow recent and forthcoming changes time to bed in. The reduction in the Cash ISA limit for those under 65 and the inclusion of unused pension wealth within the inheritance tax regime from April 2027 are significant developments to which households, advisers and providers are still adapting.

"At a time when the government wants people to save more, invest more and take greater responsibility for funding their own retirement, the last thing the system needs is another round of complexity and tinkering."

"It also reflects broader concerns about competitiveness. At a time when the government is seeking to encourage investment, entrepreneurship and economic growth, another increase in CGT could send the wrong message to business owners and investors.

"There are also lessons from the recent non-dom reforms. Potential concerns that wealthy and internationally mobile individuals may relocate have highlighted the need to consider behavioural change alongside expected tax revenues. Against that backdrop, stability in the CGT regime may be seen as a more effective approach than further rate increases.

"The Chancellor should also resist the temptation to tighten CGT through the back door. For example, removing the capital gains tax uplift on death could result in a substantial combined tax burden, with inheritance tax of up to 40% potentially followed by CGT of up to 24% when inherited assets are subsequently sold. Such a change would affect families who have undertaken legitimate long-term estate planning, create practical difficulties in establishing original acquisition costs that may date back decades, and risk discouraging asset disposals and investment activity."