Tax changes effective from midnight 22 June - such as the 28 per cent CGT rate for disposals made by higher rate and additional rate taxpayers, the lifting of entrepreneurs’ relief to £5 million (around $7.6 million), as well as reductions in the main rate and small companies’ rate of corporation tax - provide client servicing opportunities to financial planners, said Woolley and Wickenden.

On the issue of CGT and the choice of tax wrapper, higher and additional rate taxpayers will need to be more careful than before in selecting their choice of investment wrapper to get the most tax-efficient return, according to the consultancy firm.

“Prior to the announcement, it was generally thought that investment bonds were ‘tax preferable’ for income portfolios and collectives were ‘tax preferable’ for capital growth. While this remains broadly true, following the increase in the rate of CGT for higher and additional rate taxpayers, UK investment bonds may now look more tax attractive for a wider range of portfolios,” said Wickenden.

With regard to collective investment structures and subject to tax considerations, multi-managers and funds of funds can offer an environment where disposals can be made by the manager without the end investor having to consider CGT liability, says Technical Connection.