Hargreaves Lansdown sends tax warning letter to customers before Labour budget | Personal Finance | Finance

Hargreaves Lansdown has sent a letter with a warning to customers about the upcoming Labour budget.

The investment platform has urged people to ‘secure your ISA allowance’ as we approach the first budget under the new government at the end of October.

Hargreaves Lansdown, which is the number 1 platform for private investors in the UK, has sent a letter to customers warning them about potential tax changes – and how to avoid them.

The letter, seen by the Express, said: “Worried about tax changes in the autumn budget?

“Secure your ISA allowance in minutes.

“This year’s autumn budget will take place on Wednesday, October 30.

“Government warnings that the Budget will be ‘painful’ have fuelled speculation that we’re heading for more tax on investments, particularly Capital gains tax (CGT).

“We won’t know whether these rumours are true until the day of the budget, but we do know that over recent years, the CGT allowance has been falling – forcing more people to pay more tax.

“It was halved from £6,000 last year to £3,000 this year. The dividend allowance has also shrunk, from £2,000 to £500.

“Whatever happens in the Budget, now could be a good time to secure this year’s ISA allowance with your HL Stocks and Shares ISA.”

ISA contributions are shielded from tax, including stocks and shares ISAs, up to a limit of £20,000 in deposits per year, although the value of investments can go up as well as down.

Hargreaves Lansdown added: “Investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But unlike cash, investments can go down as well as up in value, so you could get back less than you put in.”