More than eight in 10 advisers and paraplanners find evidencing tax wrapper decisions takes more effort in the current environment, according to AJ Bell’s new wrapper campaign.
The last three years have seen various reductions to tax-free allowances and increases to different tax rates, with nine in 10 advisers saying wrapper decisions have become more complex during this time.
Research commissioned by AJ Bell in partnership with Technical Connection and Ad Lucem as part of its ‘Great Wrapper Reset’ report shows that 85% of advisers and 83% of paraplanners agree that as a result, evidencing decisions requires more effort.
Although almost all (99%) advisers evidence why they choose a wrapper, this falls to seven in 10 who also evidence why alternatives were rejected. AJ Bell said fewer than three in five consistently document the circumstances that should trigger a review in future.
As part of its campaign, AJ Bell presented advisers and paraplanners with multiple wrapper scenarios, both familiar and adapted to the more complex tax environment. While most navigated these scenarios tax efficiently, only a third (34%) reported feeling confident in the outcome.
Lisa Webster, senior technical consultant at AJ Bell, said: “In a world of dizzyingly complex tax planning concerns, financial advice is more important than ever. But advisers can only do what they do best with confidence when they have the tools and support required from providers. That means making wrapper decisions that provide the best outcomes for clients as well as evidencing the reasons why alternative wrappers were rejected and circumstances that should trigger a future review.
“We know advisers and paraplanners do not always have the time or resources to comprehensively document the entire wrapper decision process, which is why we have developed a Great Wrapper Reset framework and practical tips to help with this.”
AJ Bell’s Great Wrapper Reset resource hub provides a practical wrapper reset framework alongside a range of other support for advisers and paraplanners when making wrapper decisions. This includes potential steps such as using a short ‘rejected options’ prompt in suitability templates and recording events like tax status change, death, gifts or a government measure that may warrant a fresh look at a client’s wrapper choice.
AJ Bell plans to run a Great Wrapper Reset Tour from 7th to 22nd September 2026 across 10 locations, which will address the findings of the report with practical tips for advisers.
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