A quarter of financial planning firms have reported that avoiding or mitigating capital gains tax (CGT) is of growing importance to clients, according to research from the Saltus Partnership Programme.
Surveying more than 200 senior leaders at financial planning firms in the UK, the latest Financial Planning Growth Index published by the Saltus Partnership Programme and LEK Consulting, also found estate planning, including intergenerational wealth transfers, (31%) and retirement (31%) are growing priorities for clients.
Consistent with data from November 2024, Saltus said these findings underline the heightened emphasis clients are placing on long-term priorities.
Alongside this, 5% of firms reported that clients remain focused on cost of living pressures, such as rising school fees.
The research, conducted prior to the recent escalation in geopolitical tensions, also examined international relocation trends.
It found 53% of firms have seen clients move abroad in the past 12 months, rising to 60% and 75% among firms based in the South East and Greater London respectively.
Saltus Partnership Programme head of relationship management Nick Heath said: "In an industry built on longstanding, trusted relationships between advisers and clients, it is crucial firms can meet the changing demands of both prospective and existing clients.
"Our data presents a clear direction of travel, with the focus on estate planning and retirement showing no sign of slowing. For firms, now is the time to invest in the expertise and tools required to build a comprehensive offering for clients that serves all their needs."
LEK Consulting partner Bronswe Cheung added: "The findings suggest that clients remain focused on long-term financial planning despite ongoing policy uncertainty. This is where the industry must focus on: true lifetime planning-led propositions that drive long-term client retention and resilience."
Last month ex-health secretary Wes Streeting proposed equalising CGT with income tax in moves that could raise £12bn a year, according to a BBC report.
Speaking on the BBC Political Thinking podcast, Streeting claimed CGT should mirror the three income tax bands of 20%, 40% and 45%.
The report explained that under his proposals, a person's CGT band "would be calculated by adding up their income and profits from assets".
