Aegon launches enhanced capital gains tax calculator

29 October 2020

Aegon has unveiled an enhanced capital gains tax calculator for advisers using the Aegon Retirement Choices Platform.

The new tool, developed in partnership with software development group FinoComp, allows advisers and paraplanners to gather information to help manage their client’s CGT liabilities. It provides both manual and automated ‘what if’ scenarios to give advisers an overview of client’s liabilities depending on different factors.

The manual scenario is designed to allow advisers and paraplanners to input a client’s current CGT allowance, include off-platform realised gains or losses, as well as losses from previous years, and select the specific asset they wish to produce a summary for. Advisers can opt for a full sale amount, or specify a sale amount per asset, which generates an on-screen summary.

The automated version provides a more comprehensive tax optimisation functionality, which allows users to target a gain amount and generate the optimal way of realising that gain, Aegon said. It also includes similar functionality for targeting proceeds with the software suggesting the optimal way to realise the targeted proceeds and includes functionality so the optimisation tools are at an investor level considering all relevant accounts on the platform in addition to off-platform positions.

Ronnie Taylor, chief distribution officer, Aegon, says: “We’re always looking to bring in enhanced functionality that makes life easier for advisers. When it comes to platform tools we know that CGT calculation engines are highly valued and the introduction of the ‘what if’ functionality delivers a premium tool to advisers who monitor their clients’ CGT positions.

“Although the autumn budget has been cancelled, there is speculation that changes to CGT are in the Chancellor’s mind, so there’s an expectation that we’ll hear more in his spring statement. Any changes will drive increased demand from clients, anxious to understand their before and after liabilities. Having the ability to present realised and unrealised positions, in a range of scenarios, and in an easily digestible format is a real coup.”

Ray Tubman, managing director, FinoComp, described the new functionality as a “game-changer” for CGT tools.

“We instigated a substantial research project and identified that the functionality of existing CGT tools offered in the market were quite simply, not fit for purpose. Not only were they not providing key calculation and scenario-based requirements, but they were also highlighted as one of the most valuable services advisers desire from their platform providers.

“With a modern user interface, scenarios and tax optimisation processing and the ability to ingest data across multiple platforms we believe this latest microservices enhancement, which can be integrated with any technology, will significantly improve the service advisers will be able to offer to their clients.”

Professional Paraplanner