CGT concerns
Meanwhile, Dakers said another area of concern for advisers is around the capital gains tax.
“There's no doubt it causes an awful lot more work and technical input from the adviser community,” he said.
However, the counter to that, many of the advisers that Square Mile deals with have been isolating portfolios for years, and therefore the impact may be limited, he explained.
“But that doesn't mean to say that it's still not substantial. I think the HMRC is estimating another 235,000 people will end up reporting CGT.
“They think from 2025 to generate another £1.2bn but that number may be overestimated because an awful lot of the portfolios within the advisory world are in Isas, and therefore CGT doesn't apply.”
Dakers added this has caused some degree of angst with the unwrapped portfolios, but reiterated this did not mean there would be the degree of revenue return expected.
sonia.rach@ft.com
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