Advisers who are upset about the CGT changes are only thinking about their own back pockets, Towry Law CEO Andrew Fisher claims.
Fisher says the 18% flat rate CGT is the “best giveaway in history” for clients and predicts a rapid demise of insurance bonds.
“What the Chancellor has done is effectively halved the tax rate. How can any adviser with the client's best interests in mind be upset about that?” he says.
Fisher says, in the past, advisers had been swayed toward insurance bonds because they often carry an extra 3% commission.
“Advisers have been happy taking the higher commission from these products for a long time, but there are not many cases now where they can justify recommending them,” he says.
“This (CGT change) is a great opportunity for a fee-based advisers and a good opportunity for an adviser to add value for a client.
“Advisers now have a duty of care to review client portfolios.”
Beaumont Robinson Joint Managing Director John Currie says he also can not understand what “all the fuss is about”.
“As long as I have been in this industry there has been an ongoing debate about unit trusts versus bonds,” he says.
“It is not simply either/or for they each have a role in a balanced financial plan not to mention trust investment.
“Those institutions who peddle them for financial gain may however struggle.”
FundsNetwork trust and tax planning head Paul Kennedy says advisers must not become embroiled in the inevitable ‘knee-jerk’ debates which will rage on CGT.
“The case for the use of mutual funds for higher rate taxpayers investing in growth orientated investments is almost inescapable,” he says.
"For other tax-payers and other assets classes the case is more rounded and bonds will continue to play an important part.
"The truth is that there is a place for all tax wrappers.”
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