7IM has expanded its Income Model Portfolios after changes to capital gains tax allowances and wider shifts in the financial planning environment. The move gives advisers six risk profiles to work with as the firm says income generation and tax efficiency are becoming more important in client planning. The expansion comes as the provider seeks to better align portfolio construction with changing client needs.
Six risk profiles now available
The updated range now covers Cautious, Moderately Cautious, Balanced, Moderately Adventurous, Adventurous and Adventurous Plus. 7IM said the broader structure is intended to help advisers match income strategies more closely to a client’s risk appetite, rather than forcing them into a narrower set of choices.
The firm said the proposition is designed to help advisers meet client objectives more effectively, particularly where income generation and tax efficiency are becoming central considerations. That positioning places capital gains tax at the heart of the product update, with the allowance reduction named as one of the triggers for the expansion.
Why the change matters now
The timing reflects pressure on advisers to respond to a planning environment that is shifting quickly. In the provider’s view, changes to capital gains tax allowances have altered the way advisers need to think about income-focused portfolios, especially when balancing client risk, income needs and tax efficiency.
That makes the new model range more than a simple product refresh. It is being presented as a response to the practical demands advisers face when building portfolios for clients who want income without stepping outside their preferred risk level.
Immediate reaction from the provider
The provider said the expansion was prompted by a reduction in capital gains tax allowances and broader changes in the financial planning environment. It added that the new structure better enables advisers to align income strategies with client risk appetites.
It also said the range is designed to support advisers where income generation and tax efficiency are becoming increasingly important. The emphasis is clear: the update is meant to make portfolio selection more adaptable at a time when capital gains tax is influencing planning decisions.
What comes next for advisers
The next test will be how advisers use the enlarged range in day-to-day client work. With six risk profiles now available, the provider is betting that a more flexible income proposition will resonate with firms looking to adapt to the changing tax backdrop.
For now, the message is straightforward: the Income Model Portfolios have been widened to reflect the realities of a planning landscape shaped in part by capital gains tax changes, and 7IM is positioning the update as a more practical fit for advisers and their clients.
