View more on these topics

What advisers are saying: Instant gratification – Scratching the itch with a tax stick


Last week I talked about the perfect tax planning storm and opportunities emerging from these highly favourable conditions: 

l Uncertainty surrounding (and discomfort resulting from) general anti abuse rules.

l The fact that one in 10 Britons risk falling into a higher tax bracket as a result of poorly planned inheritances (data from ONS has revealed)

l The growing need to demonstrate the value of advice (above and beyond investment performance)

l The world’s increasing demand for instant gratification

Picking up the last point, The Pew Research Centre has described the dangers of hyper-connected lives with what sounds like a prescription drug warning: “Negative effects include a need for instant gratification and loss of patience” – two side-effects of parenthood I can recently testify to. Noah’s needs are instant and go from 0-60 faster than most fast things.

And my patience, I’m sorry to admit, can go walkies just as quickly. Drivers whose vehicles have not been fitted with on-board motionlessness detectors (aka babies) and linger more than a second at traffic lights, once green lit, have fallen victim to the odd ill-advised diatribe of late.

Though in truth, the only real victim is me – holding on to anger being rather like grasping a hot coal with the intent of throwing it at someone else. But, as Mark Twain said: “When angry, count four. When very angry, swear.” 

Nearly half of advisers are working with other professionals in implementing tax solutions, recognising the limitations of their own knowledge and, perhaps more importantly, the dangers and cost involved in getting it wrong in the more contentious areas of tax planning. 

But in this environment over 70 per cent of advisers also attribute value to provider-led tax planning ideas as a means of business generation.

Clients’ desire to reduce IHT but retain control over and/or access to investments represents the biggest business generation opportunity according to advisers (53 per cent rated it as a strong opportunity), closely followed by the freezing of the IHT nil rate band (36 per cent). The impact on income tax (20 per cent) and CGT (11 per cent) are seen as presenting less of a clear opportunity for engagement.

So opportunities abound for both advisers and providers, but only a small proportion seems set to take advantage (good news for the few who are) – our recent research reveals that those already considering (and implementing) tax minimisation as a core part of their business are far more likely to see it becoming more integral when compared to those advisers who are less engaged.



Phil Wickenden is managing director of So Here’s The Plan

Extracts from IFA interviews…  rarthatP-Wickenden-7Nov-700.jpg



FSCS chief: PI insurance is ‘broken reed’

Financial Services Compensation Scheme chief executive Mark Neale says professional indemnity insurance is a “broken reed” given the high excess on policies and the fact that some policies exclude FSCS claims. Last week the FSCS said an interim levy for 2013/14 will be triggered for investment advisers following the default of life settlement business Catalyst Investment […]


Mark Dampier: Threadneedle Euro Select is a solid starting place

Europe seems to remain a perpetually unloved region with retail investors. I have made similar comment in this column many times. In recent years Europe’s political and economic travails have discouraged investors. Yet many companies have prospered regardless and European stock markets have, on the whole, performed well. Despite this, sentiment towards the region remains […]


Sesame confirms network will ditch IFA-status and go restricted

Sesame Bankhall Group has confirmed its network will become restricted for investments and pensions next year. SGB says the move, tipped by Money Marketing last week, will see network advisers offer what it describes as ”whole of market” advice on investment and pensions. But it says this will not meet the FCA’s independence requirements. It will remain independent for mortgages and […]


Capita faces legal action from 550 investors over Arch cru redress

Capita Financial Managers is facing a legal challenge from 550 Arch cru investors seeking compensation of £15.6m. A group litigation order has been made for investors who are not covered by the FCA’s consumer redress scheme to claim for losses resulting from Arch cru. Those who are not covered by the scheme include execution-only investors, […]

Partied out and penniless

December has left me destitute. My piggy bank lies broken and empty, my lunchtime meal deal feels like an extravagant expense and I’m down to the Bountys in my box of Celebrations. But I won’t mourn my dearly departed pennies. Between buying gifts for loved ones (then deciding to keep them for myself) to treating […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm