Standard Life has revealed that almost two-thirds (64%) of financial advisers believe tax planning advice has become more important for their affluent* clients in recent years.
Research carried out by the savings and investment company has shown more than half of UK-based financial advisers believe the current financial climate (65%) has made tax planning more important for their clients. This
is followed by changes in tax legislation (54%) with the changes made to pension contribution limits coming third (42%).
Julie Hutchison, head of international technical insight at Standard Life, said: "There is a lot of talk about investment risk but very little about tax risk. The complexity of tax and the speed with which legislation can
change means it’s becoming more and more difficult for the consumer to understand the impact it can have on their savings and investments. And this is where financial advisers can add real value to their clients.
"The Budget is on 21 March and undoubtedly there will be further changes made, which will impact advisers' clients. And the fact the Office of Tax Simplification is continuing to delve into the UK's tax system shows further changes are on their way. This means advisers must keep a close eye on any changes and understand how they could impact their clients. Highlighting their knowledge and insight to their clients could be significant in this
important year of change in the industry."
In order to assist financial advisers, Standard Life is launching a new tax planning hub, which will provide advisers with a source of technical support and practical solutions on tax changes.
Julie Hutchison said: "In addition to useful case studies and technical briefings, the site will be updated as we move through the tax year end period, with a close eye on the Budget. This will ensure advisers have a rich source of content to help them guide their clients through the tax world."
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