Learn how retirees and advisers can protect investments and avoid cashing out during market downturns. Smart strategies for long-term retirement planning.
Article last updated 19 December 2025.
This information is based on our current understanding of HMRC tax regulations in the UK. Tax treatment depends on your client's individual circumstances and may be subject to change in the future.
The Autumn Budget raised the stakes
The 2024 Autumn Budget was one of the most significant tax-raising events in a generation. While some of the most anticipated changes – such as aligning Capital Gains Tax (CGT) rates with income tax rates or abolishing business relief – didn’t materialise, the increase in CGT rates and tighter allowances have still made a noticeable impact.
While the most dramatic predictions didn’t materialise, the changes that did come through – particularly to CGT – are already being felt. Advisers are telling us it’s getting harder to strike the right balance between tax efficiency and long-term growth.
Two thirds of advisers say portfolio management has become more difficult as a result1. Many are re-evaluating how they help clients manage assets tax-efficiently without compromising returns.
Pressure is highest in the decumulation phase
The shift from accumulation to decumulation is one of the most complex transitions in financial planning. Clients are no longer focused on simply growing their wealth. They want to draw income, minimise tax, plan for inheritance and protect their capital.
This is also when clients often feel most uncertain. They’re no longer building wealth – they’re relying on it.
Our research shows that 59% of advisers are more likely to offer bespoke investment management during decumulation. For these clients, portfolio structure matters more than ever.
A bespoke approach allows advisers to:
- Adjust income strategies over time to reflect market conditions
- Coordinate withdrawals across wrappers to reduce tax exposure
- Switch investments without triggering unnecessary CGT liabilities
- Reflect individual preferences, restrictions or legacy holdings
Tax complexity is driving bespoke adoption
Nearly all (96%) of advisers surveyed say recent CGT changes have led to increased interest in bespoke services. Clients with larger portfolios are especially exposed to capital gains, and they want solutions that allow them to rebalance or take gains in a controlled, tax-aware way.
Bespoke portfolios provide that flexibility. They make it easier to preserve allowances, harvest gains selectively and adjust holdings around client goals. They also offer the depth and oversight that complex cases demand.
This is one reason why 97% of advisers expect bespoke services to become more widely used over the next three years.
A clear value exchange for advisers and clients
Crucially, clients increasingly understand the value of a more tailored service. Some 97% of advisers say it’s easier to justify charges for bespoke than for model portfolios.
Bespoke clients also tend to be more engaged. More than nine in ten advisers say the percentage of assets they manage through bespoke services has increased in the past two years, with many expecting further growth between now and 2027.
It’s not just about personalisation. It’s about results. Advisers report better risk-adjusted outcomes, more frequent and meaningful client conversations, and greater confidence in how portfolios are positioned.
As tax complexity grows, clients need more than performance – they need clarity, reassurance and smart planning. That’s exactly where bespoke can make the difference.
Sources
- Rathbones commissioned the independent research agency PureProfile to survey 100 UK IFAs and financial planners, including 75 who currently offer bespoke investment management or discretionary fund management services.
