The majority of financial advisers say tax planning has grown in importance over the past 12 months, according to a new survey.
New research published this week by tax specialists Financial Software Limited (FSL) reveal more focus on Financial Planning tax strategies as taxes have risen.
The changes in strategy follow continued reductions to Capital Gains Tax (CGT) thresholds over the past three years.
The annual CGT exemption has been cut from £12,300 in 2022/23 to £3,000 in 2024/25, pushing an extra 87,000 taxpayers into scope of CGT.
Over the same period, FSL’s research shows the proportion of advisers’ own clients affected by CGT has doubled to 37%.
Most advice firms says they have adjusted their planning approach accordingly, with just 11% saying they have made no changes.
More than half of advisers (57%) say they are increasing joint planning between spouses to maximise both individuals’ allowances. Half (50%) are placing greater emphasis on ensuring clients fully utilise ISA and pension allowances, while 31% are boosting their use of loss-offsetting strategies.
Around six in ten advisers say they are now recommending fewer General Investment Accounts.
According to the survey, other notable shifts include:
- 29% are advising clients to defer asset sales
- 19% are increasing the use of CGT-efficient investments such as VCTs, EIS and gilts
- 18% encouraging greater use of gifting strategies
The findings echo the Lang Cat consultancy’s latest State of the Advice Nation report, which shows 76% of advice firms believe tax planning became more important in 2025.
Despite CGT planning becoming more embedded in client reviews, some advisers question whether platform functionality is keeping pace. While 62% say the support they receive from platforms is sufficient, others highlight clear gaps with 16% saying platforms provide limited or no CGT calculators, 11% cite a lack of scenario-planning tools and 2% report insufficient educational or CGT resources more broadly.
Michael Edwards, MD, Financial Software, said: “CGT is no longer a peripheral issue for advisers or their clients. With more individuals drawn into scope, tax planning has moved centre stage. Advisers are reworking financial plans and making far greater use of tax-efficient structures, which demands accurate data and robust modelling tools.”
• FSL conducted panel research among 125 advice firms during August 2025.