New research reveals the scale of change in financial planning strategies following continued reductions to capital gains tax (CGT) thresholds over the past three years.
Financial Software Limited's research found that the vast majority of advice firms have adjusted their approach, with just 11% saying they have made no changes.
More than half of advisers (57%) report increasing joint planning between spouses to maximise the use of both individuals’ allowances, making it the most common response to lower thresholds. Half (50%) are placing greater emphasis on ensuring clients fully utilise ISA and pension allowances, while 31% are increasing their use of loss-offsetting strategies.
Around six in ten advisers say they are now recommending fewer general investment accounts.
Other notable shifts include 29% advising clients to defer asset sales, 19% increasing the use of CGT-efficient investments such as VCTs, EIS and gilts, and 18% encouraging greater use of gifting strategies.
The findings echo the lang cat’s latest State of the Advice Nation report, which shows 76% of advice firms believe tax planning became more important in 2025 and is an area requiring significantly more time and focus. Advisers also report that the biggest shift in client behaviour over the past year has been heightened concern around tax and legislative uncertainty, with more time spent providing reassurance and guidance.
The annual CGT exemption has fallen sharply from £12,300 in 2022/23 to £3,000 in 2024/25, bringing an additional 87,000 taxpayers into scope. Over the same period, the proportion of advisers’ own clients affected has doubled to 37%.
Despite CGT planning becoming more embedded in routine client reviews, some advisers are questioning whether platform functionality is keeping pace. While 62% say the support they receive from platforms is sufficient, others highlight clear gaps. 16% say 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 of Financial Software Limited, commented: “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.
“CGT planning is inherently complex, so platforms must ensure they provide meaningful support. Doing so not only helps advisers deliver better outcomes but also supports their obligations under Consumer Duty, helping clients avoid foreseeable harm such as unexpected tax liabilities. Platforms that offer only basic functionality risk falling behind in an environment where advisers need holistic oversight and precision to prevent costly mistakes.”
