One in three (30%) advisers have seen an increase in capital gains tax reporting over the past year, but a significant number are frustrated about inconsistencies across platform data, according to new research from the lang cat.
The consultancy’s State of the Platform Nation Report found that changes to CGT rates and allowances are making it an increasingly important part of the planning process, with more clients being pulled into the scope of CGT.
However, one in six advisers said they were not confident that the platforms they use are accurately reflecting their client’s CGT position.
Advisers highlighted inconsistencies in how data is captured and reflected, particularly when accounts move from one provider to another during the re-registration process.
The lang cat’s analysis explored how platform processes were similar or different across some key areas raised by advisers. It found that the treatment of book costs during re-registrations in and out varied significantly, while other processes were more aligned.
Rich Mayor, senior analyst at the lang cat, said: “Changes to CGT rates and allowances have increased the need for planning for the tax. But our SOTPN research suggests a section of the advice community are frustrated with CGT reporting across platforms and a significant chunk are not confident it is reflecting their clients’ positions accurately.
“Areas in the re-registration process in particular are far from consistent and many firms are finding CGT reporting is harder than it should be.
“We don’t think this’ll be a problem that’ll go away anytime soon because platforms aren’t required to provide CGT reports. But platforms are often the golden sources for this data.
“Consistently providing book costs for new providers during transfers and potentially including CGT reports with tax statements, would help nudge it in the right direction.”
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