24 Mar 2010

AIC Investor Confidence Index Reveals Investors Worries 

Tax increases have been cited as the biggest threat to investors’ finances in 2010 according to the latest Association of Investment Companies (AIC) investor confidence index.

With a general election looming 22% of active investors are expecting further tax increases after the election.

On a positive note 72% of active investors are expecting to take out an ISA this tax year compared to 66% last year and 75% of active investors plan to use all of the new £10,200 ISA allowance in the next tax year.

Annabel Brodie-Smith, Communications Director, AIC, commented: “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. It’s not surprising that more investors are planning to use their ISA allowance this year to avoid the clutches of the taxman.”

More details of the research can be found on the AIC’s website:

http://www.theaic.co.uk/Press-centre/AIC-investor-confidence-index1/

The views that are expressed in this article should not be taken as fact and no reliance should be placed upon these when making investment decisions. They should not be considered as advice or a recommendation to buy, sell or hold a particular investment.

The value of stock market investments may fall as well as rise and you may not get back the amount you invested.  Current tax rates and reliefs, and the tax treatment of ISAs may change.  The value of any tax benefits will depend on investors' individual circumstances.