Three in four (76%) advisers see capital gains tax (CGT) support as a factor impacting their platform choice, according to research commissioned by tax reporting firm Financial Software Ltd.
Researchers from the Lang Cat spoke to 130 advisers to compile the survey.
They also found that 91% of advisers see CGT as a greater concern for them and their clients compared to two years ago.
Other notable findings included two thirds (66%) of advice firm respondents said a CGT calculator on a platform is essential, and a further 19% said it was important.
CGT functionality that includes assets’ book cost, where original cost is listed, is also considered essential by 63% of advisers and important for almost a third (30%).
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FSL noted that more people are being pulled into CGT scope, with HMRC numbers showing that since 2019/20 CGT payers have risen 36% from 272,000 to 369,000.
Michael Edwards, managing director at FSL, said: “We know that CGT is a growing issue for more investors so advisers want to provide the very best support to their clients. This means providing them with accurate and timely insights to ensure they maximise all the tax allowances and exemptions available.
“As we head towards the Budget, speculation around what might happen to CGT is creating more uncertainty, so advisers are likely to be under additional pressure to reassure clients that their assets will be protected.”
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Gareth Hope, head of research at Wren Sterling, added: “With the expectations of increases to capital gains tax rates ahead in the October Budget, and the near extinction of annual exempt amounts under the previous Government, then the challenges of CGT planning are only set to continue.
“Part of our job is to help clients steer through these challenges, and that is almost impossible without good reporting and tooling to show the options beforehand, and aid reporting afterwards.
“CGT planning and reporting tools should now be a hygiene factor for platforms, and anyone that hasn’t paid their tool, if they have one, the love it deserves in recent years, may start to find that advisory businesses actively choose against it for both new clients, but also clients already on the platform.”
