A large majority (75%) of those surveyed said that they were asked for advice on pensions, while close to 60% of the sample were asked to give advice about inheritance tax planning. Around 40% of the queries related specifically to income and capital gains tax on investments, windfalls and potential investment opportunities.
The accountants reported that the reasons for the increase in demand by clients for financial advice related to a heightened awareness of inheritance planning (70%), a rise in client liquid assets (39%) and an increase in property transactions among clients (33%).
With more than two thirds (69%) of respondents saying they referred clients seeking financial advice to a financial adviser, accountants have to be confident that their clients will be given the highest quality advice. One in five (20%) said they provided the advice themselves. A further 4% said they referred them to someone other than a financial adviser, with 6% declining to help their clients.
Chris Aitken, Head of Financial Planning at Investec Wealth & Investment, said:
“For many with complicated financial affairs, an accountant is often the first port of call for advice on investments, especially if there are questions about tax that need to be clarified. High property prices with their impact on inheritance tax and the changes to the pension regime have added to the trend, so it is unsurprising that accountants are increasingly being asked questions about financial planning. It is very important for accountants to have access to trusted partners bearing in mind the change in the regulatory landscape and constantly evolving legislation.”
