GBI Magazine is back with the latest discussion on the influential topics defining and impacting the tax-efficient investment space. We once again aimed to find out more about our readers’ thoughts and views by gathering your opinions on a range of questions that may be dominating both advisors and clients considerations right now.
Our question series this week aims to gain further insight into how advisers anticipate adjusting their clients investment strategies in the near future, which investment options advisers believe will benefit clients the most in relation to the upcoming budget, and the importance of inheritance tax mitigation for clients when it comes to recommending tax-efficient vehicles.
Industry professionals have since shared their insights, and the questions along with the results can be seen below.
1) With inflation easing and potential interest rate cuts on the horizon, how do you anticipate adjusting your clients’ tax-efficient investment strategies in the next 12 months?
With inflation slowly easing, and interest rates trending downwards, advisors have been asked how they anticipate adjusting their clients tax-efficient investment strategies within the next 12 months. The majority of advisors (76.9%), opted for increasing focus on tax-efficient investments such as ISA’s and pensions. 38.5% anticipate maintaining their current strategy and not making any considerable impactful changes at this moment in time, with 0% stating that they plan to decrease focus on tax-efficient investments.
2) As the October budget approaches, which tax-efficient investment option do you believe will offer the most potential benefits for your clients?
As Halloween creeps ever closer, so does the October budget on the 30th. It is no secret that different investment options bring their own potential and benefits, however, advisors have shared their own views on which tax-efficient investment options they believe will offer the most to clients. AIM IHT portfolios, along with Enterprise Investment Schemes received a percentage of 76.9%, resulting in the two options being seen as the most favourable when it comes to potential benefits. A major defining advantage of AIM portfolios being that there can be substantial inheritance tax relief. EIS also brings its own benefits to the table, such as exemptions on capital gains. VCT’s received a percentage of 53.8%, with ISAs and pension investments receiving a lesser 15.4%.
3) In the current economic climate, how important is inheritance tax mitigation for your clients when recommending tax-efficient vehicles such as AIM IHT portfolios?
Lastly, advisors views were gathered on how important they perceive inheritance tax mitigation to be for clients in the current environment when recommending tax-efficient vehicles. The vast majority of advisors (58.3%), state that they perceive IHT mitigation to be very important when making recommendations to clients, a lesser percentage of 41.7% agreed that this factor is moderately important, and a standout 0% stating that IHT mitigation was not important when it comes to recommendations to clients. It is clear from the findings of this question that advisors that have chosen to participate in this survey class IHT mitigation of having a level of moderate or high importance, and is regarded as a factor that should certainly be considered when talking to clients.
We would once again like to say a huge thank you to each and every one of our readers who shared their views with us, we highly value being able to gain insight into our readers thoughts on many of the factors influencing our industry. Be sure to keep an eye out on GBI Magazine for our next discussion!
Discover a selection of Tax Efficient Opportunities on our Open Offers page.
