Advisers will be keeping a keen eye on potential tax changes in the wake of Labour's victory in the general election.
With just two seats left to be announced at 1pm today (July 5), Labour had won 412 seats an increase on 211.
Advisers shared their views with FT Adviser, with capital gains tax and pensions coming up as common themes.
Finn Houlihann who runs AAF Financial said now is the time for financial planners to get planning ahead of possible tax changes announced in the next budget.
He said: “Labour’s win in the election has come as no big surprise and the financial markets have demonstrated this today.
“For financial planning, reality has set in and changes are likely to be announced in the next budget and therefore unlikely to be immediate. Labour's planned increased spending looks like it will be funded by tax rises, this presents the following 'at risk' areas for our clients.”
Houlihann said areas he will be looking at are possible increases to capital gains tax, tax changes in pensions and the VAT changes on private school fees.
Mark Ormston, director of propositions and corporate partnerships at Retirement Line said there are a number of unknowns which advisers will have to face in the coming months.
He added: "There are a good number of unknowns and we hope to find out the scope of their review in the coming weeks and months.
"Pensions tax (in particular on death) is going to be something being watched very closely.
"When it comes to annuities and annuity rates unless the new government announces anything highly unexpected and we don’t have any unforeseen external factors, I would project a steady fall in rates over the next 12 months."
While Peter Ditchburn, from Deep Dive Financial Planning, expects there will be an increase in demand for advice on inheritance tax.
He said: "The inheritance tax allowances are currently frozen until at least April 2028 so there was already scope for an increasing tax take under the next government. Labour's main manifesto point on IHT only affects people with offshore trusts, but further changes wouldn't be surprising."
Tax breaks
Andrew Tricker, director at Lubbock Wealth Management, believed it was crucial, before the first Budget, for clients to take advantage of the tax breaks available now that are at risk of being altered or cut by a change of government.
He explained: "A four-point CGT reduction is a substantial saving for sellers – and that saving may have a short shelf-life. Property owners should be keenly aware that tax rates may go back up after the election. Additionally, owners of holiday lets like Airbnb have less than a year to enjoy a far lower tax rate on the sale of their property.
