The UK stock market could lose billions in value if the Chancellor makes even modest changes to key retail investor taxes, new analysis from IG suggests.

Research by the trading platform found that a two percentage point rise in dividend and capital gains tax could knock £4bn off the FTSE.

For a government that says it wants to help promote the UK stock market, pushing ahead with rumoured changes seems counterproductive.

The analysis, published as part of IG’s ‘Hands off our investments’ campaign, combines established economic research on tax-equity value relationships with Office for National Statistics investor ownership data.

Currently, investors receive a £500 tax-free dividend allowance before paying rates of 8.75%, 33.75%, or 39.35% depending on their income bracket. Capital gains tax stands at a £3,000 annual exemption, then 18% for basic rate taxpayers and 24% for higher earners.

The platform’s modelling also examined changes to pension tax. Cutting the tax-free lump sum from £268,000 to £50,000 could reduce annual pension contributions by around £800m, the research found. This is money that may be destined for London-listed shares.

Even a smaller reduction to £100,000 would trigger a £300m fall in contributions, based on Institute for Fiscal Studies estimates of how savers respond to tax incentives.

IG is calling on the government to freeze all three policies ahead of next month’s Autumn Budget. The company argues that raising these taxes—often viewed as easy revenue targets—risks undermining efforts to encourage wider share ownership.

The Chancellor has yet to comment on potential tax changes.​​​​​​​​​​​​​​​​

“The government has been clear about its ambition to shift the UK away from a savings-first mindset and encourage more Brits to invest, supporting the stock market and growing their wealth,” said Michael Healy, UK Managing Director at IG.

“That goal would be seriously undermined if any of the tax areas we’ve highlighted are targeted in next month’s Autumn Budget.

“If we want to build a nation of investors, we cannot make it less attractive to invest – whether that’s in an ISA, outside of an ISA, or in a pension. We’re asking the government to keep their hands off our investments: no raids on pensions, no hikes to dividend tax, and no increase to capital gains tax. Britain needs long-term investors, not short-term tax grabs.”

Barclays shares rose on Wednesday after the bank announced Q3 results and surprised investors with a £500m share buyback.

Barclays delivered solid performance in Q3 2025, with group profit before tax of £2.1bn and a RoTE of 10.6%, down from 12.3% in Q3 2024. 

Such has been the strength of RoTE year to date that the group upgraded its outlook for the year. 

All divisions achieved double-digit RoTE during the quarter. 

Group income rose 9% year-on-year to £7.2bn, with net interest income outside the Investment Bank and Head Office increasing 16% to £3.3bn, demonstrating strong underlying momentum across the retail and commercial banking businesses.

This was a period when all divisions performed well. No area produced blowout results, but in combination, there was a lot to like.

Barclays UK posted a 16% increase driven by structural hedge income and the Tesco Bank acquisition, whilst the UK Corporate Bank grew revenues by 17% on higher deposit and lending balances. 

The Investment Bank delivered 8% growth, driven by gains across Global Markets and Investment Banking, supported by stable income streams. 

The US Consumer Bank saw the strongest performance with 19% income growth, reflecting repricing initiatives.

Although Barclays isn’t one of the most exposed to the motor finance scandal, it is impacted through its Clydesdale subsidiary and was forced to increase provisions by £235m after recent developments.

But the motor finance update wasn’t enough to dampen the mood around a £500m share buyback. 

“Barclays’ latest results show a bank quietly outperforming despite headline noise,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The extra charge tied to motor finance grabbed attention, but investors had largely priced that in already with shares underperforming in recent weeks. Strip out that provision and profits were 13% ahead of expectations, helped by revenue growth that beat forecasts by 2%, driven mainly by strong US card spending. 

“Guidance was lifted – though mostly to match consensus – and a fresh £500 million buyback underlines confidence in the bank’s capital strength. Investment banking edged past estimates but lacked the big gains seen at US rivals, leaving Barclays leaning on its diversified model to deliver steady progress without any major fireworks.”

Barclays shares were 3% higher at the time of writing.

The FTSE 100 rose again on Tuesday as a weaker pound helped support the index following a strong session for US stocks amid hopes of progress in US/China trade talks and positive earnings.

London’s flagship index was 0.4% higher at the time of writing.

“It’s hard to imagine that markets were in panic mode only four days ago,” said Russ Mould, investment director at AJ Bell. “It’s like all the troubles faded away over the weekend, and investors are back in risk-on mode.

“Wall Street enjoyed a particularly strong session on Monday, and that optimism has extended to Asia and Europe on Tuesday. The focus is now on US interest rate cuts, the new corporate reporting season, and US/China trade talks.

Segro was the FTSE 100’s top riser after the group announced a promising uptick in rental agreements and a growing pipeline of data centre business. 

“Segro’s latest update shows an encouraging rebound in momentum across its logistics and industrial portfolio. £22 million of new rent signings in the quarter and a 37% uplift on rent reviews underline resilient tenant demand despite a still challenging rate backdrop,” explained Adam Vettese, market analyst for eToro.

“Its data centre strategy is emerging as a powerful growth driver, with new pre lets helping deliver the most productive quarter of development since early 2024 and capacity expansion in key markets like London.”

Segro shares were 3% higher at the time of writing, with the group emerging as one of the FTSE 100’s most direct ways of playing the AI story.

Unilever shares slipped marginally on news that the spinout of its Magnum has been delayed due to the US government shutdown.

“Unilever is in the process of demerging its ice cream division, now known as The Magnum Ice Cream Company, onto the US stock market. But the deal has hit a snag, in the form of the US Government shutdown,” said Steve Clayton, head of equity funds, Hargreaves Lansdown.

“With federal employees laid off until Congress agrees a new funding deal, there’s simply no-one available to approve the paperwork, putting the demerger on hold. With neither the White House nor the opposing Democrats seemingly prepared to give ground on spending, Magnum’s stock-market debut is stalled for now.”

Unilever shares were down around 1% at the time of writing.

Bunzl shares slipped 2% after announcing a steady, yet fairly uninspiring, Q3 performance. 

Miners were the biggest drag on the index on a sector basis as both diversified and precious metals miners fell. However, it was the precious metals that were the most heavily hit as the gold price continued to pull back from its record run. 

“Gold edged lower on Tuesday as investors took profits following recent record highs, while signs that the US government shutdown could be resolved this week could add to the selling pressure,” said Joseph Dahrieh, Managing Principal at Tickmill.

Fresnillo lost over 4% and was the biggest faller, and gold-focused miner Endeavour gave up 3%. 

Eco Buildings, the UK modular housing firm, has landed a seven-year deal with the Chilean government to supply 20,000 homes under its government social housing scheme. 

This is the deal investors will have been waiting for.

The landmark contract is worth €420 million and is the biggest validation of the firm’s modular homes concept to date. It will also generate significant revenues for the firm that still only has a market cap of £25m, even after a 75% rally on Tuesday. 

The AIM-listed company will deliver homes starting with an initial tranche of 607 houses in 2026, scaling up to 5,000 homes annually by year seven. 

The deal follows a two-year certification process and successful demonstration projects in Melipilla and Valparaíso, which were inspected by senior government officials and parliamentarians.

Under Chile’s structured framework, Eco will receive 50% deposits at the start of each housing lot, with the balance paid upon delivery and verification. This provides predictable cash flow and minimal working capital risk throughout the programme.

The Chilean government will pay a €12.75 million deposit for 50% of the first tranche of 607 homes.

To meet demand, Eco will install a new automated manufacturing line in Chile during Q2 2026, utilising its glass fibre reinforced gypsum (GFRG) panel technology.

The company plans to replicate the model across the region.

“Securing our first project in Latin America represents an important milestone for Eco Buildings and demonstrates the scalability of our revolutionary technology across new markets. Chile provides a strong regulatory framework and a strategic entry point into the wider region,” said Dr Etrur Albani, Executive Vice-Chairman of Eco Buildings.

“Our focus is on delivering high-quality, sustainable and affordable housing through an efficient, industrialised approach. We believe our technology can support governments and developers in accelerating housing delivery across Latin America in a cost-effective and environmentally responsible way.”

Segro had an encouraging third quarter, signing £22 million of new rental agreements as improving market conditions drive increased letting activity across its European warehouse portfolio.

Segro shares rose 2% in early trade on Tuesday.

The property group’s momentum accelerated through the three months to September. This represented its strongest quarter for pre-lettings since early 2024, with total new headline rent for the nine-month period reaching £53 million.

The FTSE 100 company’s modern portfolio continues to capture significant rental uplifts. Year-to-date rent reviews, renewals and regears across 170 transactions delivered an average increase of 37%, split between 49% in the UK and 8% in Europe.

An encouraging pipeline of data centre business has caught the attention of the market and made Segro one of the leading ways to gain exposure to Europe’s AI growth.

“SEGRO has had a strong third quarter, with improving occupier sentiment reflected in £22 million of new headline rent signed during the period, bringing the total signed year-to-date to £53 million,” said David Sleath, Chief Executive.

“We have made good progress in capturing the significant mark-to-market rent potential in our existing portfolio, whilst maintaining occupancy levels and retaining customers.

“Momentum continues to build in our profitable development programme. We had our strongest quarter of pre-letting activity since Q1 2024, signing £7 million of deals versus £3 million in H1 2025, and have a healthy pipeline of further projects under discussion with enquiry levels increasing post the summer. Our fully fitted data centre joint venture is on track to submit a planning application in the coming weeks, and we are progressing multiple negotiations on both powered shells and new fully fitted opportunities in the UK and Continental Europe.”

Majestic Corporation shares rose in London as the e-waste recycler announced its admission to the US OTC market.

The move aims to increase accessibility for investors in US and Asia – two geographies where the group has operational expsoure.

Majestic will keep its Aquis listing and continue to distribute announcements via the Regulatory News Service (RNS).

“We value the support of the increasing global investor community that are interested in our story at Majestic,” said Peter Lai, Founder, CEO and Chairman of Majestic.

“Trading on the OTCQB will enhance access to Majestic’s equity for investors in both the US and Asia, while improving the stock’s liquidity. We remain grateful for the continued support of our investors and look forward to the future with excitement.”

Majestic Corporation specialises in returning critical minerals to the supply through e-waste recycling activities and is expanding rapdily in the UK.

The group is aiming to process 100,000 tonnes of materials annually by 2030.

The FTSE 100 rallied on Monday as European markets tracked Asian stocks higher amid trade negotiation hopes.

London’s leading index was 0.3% at the time of writing.

“A big recovery in Asian markets helped give the FTSE 100 a lift as investors look to put a difficult week behind them,” says AJ Bell investment director Russ Mould.

Investors will be laser-focused on talks between the US and China this week. The outcome and any accompanying social media posts by the US president could set the tone for financial markets and possibly push global indices to fresh record highs.

“Market sentiment improved slightly after President Donald Trump signalled that broad tariffs on China would be unsustainable and negotiators from both sides confirmed plans for renewed talks in the coming days,” said Kudotrade’s Konstantinos Chrysikos.

“Any progress this week could reinforce risk appetite.”

There was indeed a risk-on feel to trade in FTSE 100 shares on Monday as cyclical sectors, including financials, energy and engineering, gained.

The FTSE 100’s China-focused banking stocks were among the top risers with Prudential, Standard Chartered and HSBC gaining between 1.8%-2.2%.

Babcock was the top riser with gains of 2.4% as the defence contractor looked set to snap a losing streak.

Legal & General edged lower after announcing £2bn investment to spur the regeneration of regional housing and infrastructure.

Traders booked short-term gains in Pearson after the publisher surged on Friday. Shares were down 2.2% and were at the bottom of the leaderboard.