From a purist perspective, if we assume a basic rate taxpaying client, whose pension income utilises their personal allowance, holding income (interest) producing assets via an ISA and equity distributions via a collective would enable the best tax position from an income view. Let me explain.

Dividends are taxed the same for a basic rate taxpayer inside an ISA as they are directly (within a collective) and would suffer a 10% non-reclaimable tax credit. A fixed interest type fund however would normally come with 20% deducted at source if held directly (which would also be non-reclaimable) but inside the ISA dividends would be paid and received gross.

Although a simple example, maximising income in this low interest rate environment has been a key driver for many clients and this will persist for the short to medium term. Planning how income can be maximised in future years will also help clients understand the value of the advice received and the benefit of holding more than one wrapper.

For higher rate taxpayers and those paying tax at 50%, exempt income in the above example has added value due to the tax saved. For those clients in the accumulation stage, who are borderline basic and higher rate taxpayers, the need to shelter income and protect child benefits from 2013 where applicable (should Government proposals be implemented) may drive further investment into tax incentivised savings schemes.

In the new RDR world, indentifying advice points with clients, such as the most efficient wrapper to hold certain assets, will be key to ongoing adviser charging but also in underlining to clients the value of the advice they receive.