UK Investment Association Seeks Stable Pension Tax Rules Ahead of Budget

The Investment Association urged the UK government to provide long-term certainty on pension taxes ahead of the Budget, saying policy changes are making retirement planning harder. In an IA survey, 38% of adults said changes to pensions policy made it more difficult to plan for the future.

The poll of 2,000 UK adults was conducted by Opinium from September 11 to 15. Some 34% worried that pension tax benefits could be reduced after the Autumn Budget, while 33% said they would save more if tax rules stayed broadly stable during their working lives.

The trade group wants a lasting framework that helps savers understand how pension contributions will be taxed over time. It argues that uncertainty before fiscal events can weaken confidence and prompt people to make short-term decisions.

The association also called on ministers to avoid further capital gains tax increases and protect the simplicity of tax-free Individual Savings Accounts. It says those measures would support efforts to encourage longer-term investing.

A further proposal is to abolish stamp duty on shares. The IA says the UK has the world’s highest tax on share transactions, while companies on the London Stock Exchange’s main market declined from nearly 1,700 in 2006 to 909 in July 2026. The figures show a shrinking market, but do not establish stamp duty as its cause.

The IA also pointed to investor withdrawals ahead of last year’s Budget. In October 2025, retail investors withdrew £4.5 billion from investments, including £1.4 billion from UK equities, amid concern about possible tax changes, according to the association.

The group’s argument links household retirement security with investment in British businesses. It says private pensions will need to play a larger role as state pension spending rises, and that stable rules could encourage more saving and provide capital for UK companies.

The Budget will show whether the Chancellor adopts any of the proposals. For now, the IA is pressing for clear pension tax principles, fewer barriers to investing and a stronger supply of UK investment opportunities.