Paul Squirrell, Head of Retirement and Savings Development, Fidelity Adviser Solutions, picks his top technical article from a series that were shared from the firm’s website in Professional Paraplanner daily emails.
Paul told Professional Paraplanner: “This month I’m drawing attention to ‘Tax increases reignite the bonds versus collectives question’ because the changes emerging from the November 2025 Budget alter the landscape in ways paraplanners really need to engage with.
“The Budget confirmed a rise in income tax on savings interest generated outside ISAs and pensions from April 2027. The basic rate will move to 22%, the higher rate to 42%, and the additional rate to 47%.
“That adjustment also reaches into the mechanics of onshore and offshore bonds, since the internal rate of taxation applied to onshore bonds will shift to match the new 22% basic rate.
“Dividend tax will also rise by 2% from April 2026, increasing the ordinary rate to 10.75% and the upper rate to 35.75%, which brings General Investment Accounts under more pressure than before.
“The highlighted article has an emphasis on examining the full set of conditions that influence wrapper choice. It encourages consideration of holding periods, the tax band an investor will fall into during / at the end of that period, and the way different investment types distribute income.
“The article’s analysis offers a practical route to reassessing wrapper suitability at a moment when many client strategies will need updating.”
You can read more Fidelity Adviser Solutions technical insights here: Insights and opinions overview | Fidelity Adviser Solutions
