Budget fears a boon for Hargreaves Lansdown
Published: 18:32 29 Oct 2024 AEDT
Retail investment platform Hargreaves Lansdown PLC (LSE:HL.) saw increased customer inflows into tax-advantaged accounts such as SIPPs and ISAs over the past three months thanks to anxiety over tomorrow’s Autumn Budget from Labour Chancellor Rachel Reeves.
Net client growth for the quarter ending September 30 totalled 18,000, more than double the same period last year.
This led to higher dealing volumes and a 7% increase in total revenue.
Hargreaves, which is in the process of being taken off market by a private equity consortium, said this increased dealing volume more than offset tighter net interest margins due to lower interest rates.
Sarah Coles, head of personal finance, Hargreaves Lansdown said: “The Budget has inspired a record-breaking six months for saving and investing, as people have been reminded just how valuable their ISA and pension allowances are, and rush to make the most of them while they know where they stand.
“It’s the biggest year ever for the number of people paying into their SIPPs, JISAs and LISAs, and the second biggest for ISAs – after the pandemic peak in 2022.
“It’s a great sign that people are taking sensible steps to prepare for whatever the Budget holds in store, and it’s not too late to get stuck in.”
Helen Morrissey, head of retirement analysis, said to expect “a big Budget for pensions”.
“Speculation started with suggestions of a move to a flat rate of tax relief – a shift that would work in favour of basic rate taxpayers but against those paying tax at a higher or additional rate,” she added.
Reeves is expected to deliver numerous increases to wealth taxes, such as capital gains and inheritance tax, tomorrow.
