Capital gains tax (CGT) functionalities are becoming pivotal in platform selection for financial advisers.
- A survey by Financial Software Ltd (FSL) reveals 76% of advisers are influenced by the support provided by platforms.
- Concerns around the CGT regime have heightened, with 91% of advisers noting increased importance compared to two years ago.
- Recent HMRC data indicates a significant rise in individuals subjected to CGT, emphasising its growing relevance.
- This shift reflects a broader industry trend towards more comprehensive financial advisory support tools.
As financial advisers navigate evolving tax landscapes, the importance of capital gains tax (CGT) functionalities and support has become increasingly significant in their platform selection process. A survey conducted by Financial Software Ltd (FSL) highlights that 76% of advisers consider the quality of CGT support a crucial factor in their decision-making. This insight underscores the need for platforms to enhance their offerings to remain competitive and meet the demands of modern advisory practices.
The research, managed by The Lang Cat and commissioned by FSL, not only points to a heightened awareness of CGT issues but also illustrates a profound shift in adviser priorities. Over 91% of the 130 advisers polled have expressed that the importance of CGT has increased compared with two years ago. This perception is likely influenced by ongoing speculation about changes to the CGT regime, amplifying the urgency for advisers and clients to be well-prepared.
Further illustrating the changing landscape, the latest figures from HM Revenue and Customs reveal a notable increase in the number of people paying capital gains tax. Since the 2019/20 financial year, the number has surged from 272,000 to 369,000, reflecting a broader trend of more individuals being drawn into the CGT bracket due to policy shifts and economic changes.
This data serves as a crucial reminder of the growing pressure on financial advisers to adapt their strategies and platform choices accordingly. The ability to provide robust CGT support is no longer a luxury but a necessity in ensuring comprehensive client service and maintaining competitive advantage.
The evolving focus on CGT support underscores the necessity for platforms to adapt in meeting the increasing demands of financial advisers.
