DIY investors most concerned over increased rates of tax on property, dividends and savings, and Cash ISA reduction

December 16, 2025

The Chancellor’s Budget announcement on 26th November has been met with mixed reaction among DIY investors, according to new research from Charles Stanley, part of Raymond James Wealth Management (RJWM).

Notable characteristics of the fiscal event were that of higher income tax burdens and a ‘pick and mix’ of smaller, technical revenue raisers that aimed to fill the fresh hole in the nation’s finances. Frozen tax bands also did much of the heavy lifting for the Treasury, amounting to higher taxes for everyone subject to income tax.

When thinking about how concerned investors are about specific measures announced, 71% said they were concerned about the increase in basic and higher rates of tax on property, dividends, and savings. The same number (71%) said they were concerned about the cut to the cash ISA allowance from £20,000 to £12,000.

This is followed by concerns that income tax thresholds will be frozen until 2031 (66%), and rules to salary sacrifice changing in 2029 (65%).

Concerns over announcements made in the November Budget:

	Concerned	Not concerned
Cash ISA allowance cut to £12k from April 2027 (excluding those aged 65 and over)	71%	27%
Increased basic and higher rates of tax on property / dividends/ savings	71%	27%
Income tax thresholds frozen	66%	31%
Salary sacrifice changing in 2029	65%	31%
National Insurance thresholds frozen	58%	38%
3p per mile tax on electric vehicles	55%	41%
Abolishment of voluntary national insurance contributions to people living abroad	50%	42%
Gambling tax changes including general betting duty	44%	52%
Mansion tax on homes over £2m in 2028	43%	53%

Rob Morgan, Chief Investment Analyst at Charles Stanley, comments:

“No one was expecting a quiet Budget and so it proved. Chancellor Rachel Reeves wielded the famous red box with a sizable gap to close to meet her fiscal target amid criticism that her measures last year had made life difficult for businesses and constrained all-important economic growth.

“This year, the chancellor’s objective was to calibrate raising tax revenue without impinging economic growth or stoking inflation. While there was a little more pressure applied to businesses with an increase in pay for younger workers, it was moderate to high earners and wealthy individuals who were most in the firing line this time. Notably though, while significant changes have been made in some areas, such as ISA allowances or salary sacrifice, investors have time to prepare for these. Speaking to a financial adviser can help in understanding what these mean for individuals and their finances to keep them in the best position possible.”