AJ Bell Urges Chancellor Healey to Reverse Tax Proposals

Investment platform AJ Bell is calling on Chancellor John Healey to reverse or modify several tax proposals initiated under the tenure of former Chancellor Rachel Reeves. The firm argues that persistent speculation regarding ISA reforms and pension tax-free cash has damaged investor confidence, leading individuals to withdraw billions of pounds from retirement accounts based on fear rather than long-term goals.

AJ Bell's primary demands include a commitment to protect pension tax-free cash, the abandonment of planned ISA changes—specifically reduced Cash ISA allowances for those under 65—and a simplification of proposals to include unused pensions in inheritance tax. The platform asserts that these measures are necessary to restore certainty and simplicity for savers and investors.

Beyond the immediate tax reversals, the firm is advocating for a review of automatic pension enrolment and a more sustainable approach to the state pension triple lock. Additionally, AJ Bell is urging the Treasury to fix the "£100,000 tax trap," where the withdrawal of personal allowances creates a high effective marginal tax rate for taxpayers.