Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Monday, June 16
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Stock Market»Investors pull £300m from UK stocks amid inheritance tax fears
    Stock Market

    Investors pull £300m from UK stocks amid inheritance tax fears

    October 30, 20243 Mins Read


    Rachel Reeves’s anticipated inheritance tax (IHT) changes have sparked a sharp sell-off in UK stocks, with investors withdrawing nearly £300m from funds invested in small UK companies last month, according to Morningstar Direct.

    This represents a significant increase from the £80m withdrawn in August and reflects growing apprehension among investors about potential tax changes in Wednesday’s Budget.

    Funds specialising in mid-sized UK stocks also experienced net outflows, with £30m withdrawn in September, ending five months of consistent inflows. This shift underscores the uncertainty in the market, as investors seek to avoid any adverse effects on their assets from possible changes to IHT exemptions.

    Shares in smaller companies listed on Aim, the junior stock market, have long been a popular choice for wealthier investors aiming to minimise inheritance tax, as these shares currently qualify for business relief, making them exempt from IHT. However, fears of changes to this tax break are causing investors to divest before Reeves’s maiden Budget announcement.

    Neil Birrell, chief investment officer at Premier Miton, highlighted the increased activity among smaller private investors concerned about IHT. “There’s very little liquidity around, and that’s pushing share prices down. Beyond that, there’s a general hesitation to invest in the UK ahead of the Budget,” he noted. The uncertainty, he added, has cast a shadow over UK equity markets, dampening sentiment.

    Market analyst Mark Preskett from Morningstar also observed that financial advisers are seeing heightened nervousness among clients over the potential tax changes. “Some clients are anxious about potential tax adjustments, leading to more redemptions in recent months,” he explained. Smaller and mid-cap stocks, which are more exposed to the UK economy, are especially vulnerable to any Budget outcomes impacting domestic markets.

    The impact of these investor moves is being felt by fund managers, with Liontrust reporting over £1bn in net outflows over the last quarter and wealth manager Brooks Macdonald attributing £100m in outflows to a drop in investor confidence.

    As the Budget draws near, UK equity markets are under pressure, with investors looking to mitigate risks amidst speculation on tax reforms. This trend reflects broader concerns about the economic outlook and the potential for policy shifts that could reshape the investment landscape for small and mid-cap stocks in the UK.


    Jamie Young

    Jamie Young

    Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
    Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends.

    When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleWorld Bank: Global food commodity prices to fall 4% in 2025
    Next Article Glencore Keeps Guidance After Sequentially Stronger Metals Output — Commodities Roundup

    Related Posts

    Stock Market

    Markets and oil prices rise as Iran-Israel conflict enters fourth day

    June 16, 2025
    Stock Market

    Concentrated Stock Positions: Compounding Versus Risk

    June 15, 2025
    Stock Market

    Stock Market Outlook: Iran-Israel Conflict, Oil Prices, US Rates: Rediff Moneynews

    June 14, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Action Ganglong China Property Group Limited | Cours 6968 Bourse Hong Kong S.E.

    July 31, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007

    les fondamentaux de l’or restent bons

    September 4, 2007
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Bitcoin

    Quel avenir pour le Bitcoin d’ici la fin de l’année 2025 ?

    April 6, 2025
    Art

    “Mark Kostabi and London Art Exchange Redefine Luxury Interiors with Visionary Art”

    January 28, 2025
    Bitcoin

    Jusqu’à 10 000 dollars par mois de Bitcoin exonérés d’impôts ? Le Rhode Island pourrait ouvrir la voie

    April 4, 2025
    What's Hot

    Noval Property acquiert un terrain à Marousi, en Grèce, pour 0,2 million d’euros

    April 30, 2025

    ‘A legacy issue…’: Nithin Kamath says Zerodha users can now trade commodities with existing equity account

    July 18, 2024

    BHP CEO expects a turnaround in China’s property sector in year ahead

    August 27, 2024
    Most Popular

    Le bitcoin perd plus de 5 % pour atteindre son niveau le plus bas depuis le 11 novembre -Le 28 février 2025 à 04:26

    February 27, 2025

    NJ property values have risen the most in these towns

    January 8, 2025

    Will the Stock Market Crash or Soar in the Second Half of 2025? Wall Street Has a Surprising Answer for Investors.

    May 20, 2025
    Editor's Picks

    Genova Property Group émet de nouvelles obligations vertes d’une valeur de 650 millions de couronnes suédoises. -Le 19 mars 2025 à 20:11

    March 19, 2025

    Asia equities sharply higher, following US stocks

    August 16, 2024

    Bitcoin And A Trillion: A Bold Plan Is Taking Shape

    October 12, 2024
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.