Tax rises 'the biggest threat to investors'

Investors see tax rises as the biggest obstacle to gaining returns from their private wealth ahead of the upcoming general election.

This is one of the findings of new research from the Association of Investment Companies (AIC), which found 45 per cent of active investors perceive changes to tax rates as the biggest threat to their operations.

Over one-fifth (22 per cent), cited the forthcoming 50 per cent income tax for those who earn over £150,000 as the largest obstacle, while more tax increases after the general election were seen as a problem for a further 22 per cent.

The recession, inflation, a stock market crash and a reduction of Britain’s credit rating were of lesser concern, with between eight per cent and 13 per cent naming these as their greatest worries.

’With a general election on the horizon, it’s clear that investors consider the prospect of tax changes to be the biggest threat to their finances,’ remarked AIC communications director Annabel Brodie-Smith.

The 50 per cent tax on high earners is due to come into force on April 6th and has resulted in a number of businesses and executives searching for ways to avoid the levy.ADNFCR-2318-ID-19683887-ADNFCR