Advisers highlight growing complexity of tax wrapper decision process

AJ Bell, in partnership with Technical Connection and Ad Lucem, has launched its ‘Great Wrapper Reset’ campaign to support advisers with growing complexity in the tax wrapper decision process.

Its research showed that 88 per cent of financial advisers and 86 per cent of paraplanners believed the wrapper decision process had become more complex over the past three years.

The report noted that advisers were operating in an increasingly challenging tax environment, as successive governments had reduced various tax-free allowances and increased rates, while pensions will be brought into the scope of inheritance tax (IHT) from April 2027.

While tax wrapper choice has never been a one-size-fits-all approach, the report argued that the decision process now needs a reset, especially when it comes to intergenerational wealth transfer.

Nearly two fifths (79 per cent) of advisers said they would use a wrapper decision framework if one existed.

In light of the findings, AJ Bell’s Great Wrapper Reset resource hub will provide a wrapper reset framework alongside a range of other support for advisers when making wrapper choices.

This included tips for effective wrapper conversations developed, in partnership with behavioural science firm Cowry, to make sure advisers are equipped to help clients with making good decisions.

AJ Bell’s ‘Great Wrapper Reset Tour’ will run from 7 to 22 September 2026 across 10 locations and address the findings of the report with tips for advisers.

“The Great Wrapper Reset has already begun,” said AJ Bell head of technical, Charlene Young.

“An ever-changing tax and regulatory environment that shows no signs of slowing down has forced advisers to reconsider approaches and challenge past assumptions on how clients draw income from their wealth in retirement.

“The fact almost nine-in-10 agree wrapper decisions have become more complex shows this reset is something the entire industry must recognise, and providers need to be on hand to support advisers and clients with navigating those decisions."

Young argued that financial advice had never been more important, and more clients will be turning to their advisers on tax and estate planning to reassure them that they will be able to both access and pass on their life savings as tax efficiently as possible.

“But advisers can only do this effectively and feel good about advising if they have the right tools and support from providers,” she noted.

Technical Connection managing director and founder, Tony Wickenden, commented: “I’m delighted to have worked with the brilliant AJ Bell team on this important project.

“It’s a subject that has been close to my heart for some time, and I’m proud of what we’ve achieved: a combination of current, deep insight and serious, detailed consideration of the many moving parts of material tax change, affecting every stage of the wealth journey, from accumulation through decumulation to wealth preservation and transfer.

“I’m confident that what AJ Bell has developed from this raw material will prove of real value and practical assistance to the many advisers meeting the challenges of the Great Wrapper Reset.”

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