Tax continues to occupy an important place in the financial planning spectrum but you would expect a Wickenden to say that (I received a Tolley’s Tax Guide for my first birthday).
What with all the publicity – the good, the bad and the Rooney – taxation is undoubtedly an increasingly strong concern for advised clients. Its importance from a political standpoint further compounds interest in legitimately reducing it.
In particular, the taxation aspects of the new drawdown relaxations and the greater freedoms in relation to pension death benefits have attracted much interest, debate and activity. With further limitations on pension input in prospect post-election, tax-effective wrapper choice for investment beyond pensions and Isas is likely to assume even greater importance.
Where to draw funds from when the time comes will also require a detailed consideration of tax to ensure the optimum outcome and to reduce the strain on financial capital.
So tax is big news. Investors are interested in it and saving it with tried and tested strategies.
Advisers also recognise its increasing importance to their business; 83 per cent believe tax minimisation represents an important part of charged for advice. But only 6 per cent of advisers feel they are “fully” leveraging opportunities.
Phil Wickenden is managing director of So Here’s The Plan