Aegon introduces enhanced CGT tool
- Aegon adds new functionality to CGT tool to help advisers
- Speculation of a review of CGT by the Chancellor places keen focus on liabilities
Aegon has today announced the launch of an enhanced capital gains tax (CGT) calculator, developed in partnership with software development specialists, FinoComp, a Bravura company, for advisers using the Aegon Retirement Choices (ARC) platform,
The new tool’s reporting functionality allows advisers and para-planners to gather information in a simple and intuitive way, helping to manage their client’s CGT liabilities.
The new tool, which will also soon be available on the Aegon Platform, provides an enhanced user experience with the ability to easily demonstrate a number of scenarios to the client. The functionality provides options of both manual and automated ‘what if’ scenarios to provide a comprehensive overview of a client’s liabilities depending on different factors and help visualise realised and unrealised positions.
Manual What-If Scenarios
The tool has the ability to allow users to input a client’s current CGT allowance, include off-platform realised gains or losses, and losses from previous years, and select the specific assets they wish to produce a summary for. It accommodates the selection of the full sale amount or for advisers to specify a sale amount per asset and generates an on-screen summary, which can then be downloaded as a PDF or in Excel and shared with the client.
Automated What-If Scenarios
There is also more comprehensive tax optimisation functionality, which allows advisers to target a gain amount (such as the tax free threshold), which generates the optimal way of realising that gain. It also includes similar functionality for targeting proceeds with the engine suggesting the optimal way to realise the targeted proceeds. This also includes functionality so the optimisation tools are at an investor level considering all relevant accounts on platform in addition to off platform positions. Summary reports are then produced with options to download as PDF and Excel. It also provides the capability for certain assets to be excluded from the calculation.
Ronnie Taylor, Chief Distribution Office at Aegon commented:
“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.
“We’re delighted to have worked with FinoComp to deliver this to the market and look forward to the development of further gains reporting and scenario planning in the future.”
David Lloyd, Head of Private Client, LEBC Group, commented on the tool’s usability:
“This is a great new additional tool, which will help us in assessing the impact of sell downs before instructing trades. The automated scenarios such as targeting a gain and targeting sale proceeds also help us align with our customers’ goals.”
Ray Tubman Managing Director at FinoComp said:
"We think that this is an absolute game-changer for CGT tools and are delighted to be bringing this to market on the Aegon platform. 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.”
Notes to Editors
- In the UK, Aegon offers retirement, workplace savings and protection solutions to over three million customers. Aegon employs around 2000 people in the UK and together with a further 800 people employed by Atos, we serve the needs of our customers. More information: aegon.co.uk
- As an international life insurance, pensions and asset management group based in The Hague, Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon companies employ approximately 26,000 people and have millions of customers across the globe. Further information: aegon.com
Figures correct as of November 2019