Fidelity warns tax wrapper selection affects returns

Returns from a capital growth investment could vary up to 67% depending on the tax wrapper selected...

Returns from a capital growth investment could vary up to 67% depending on the tax wrapper selected, research from FundsNetwork has revealed. The group’s head of trusts and tax planning solutions Paul Kennedy has warned using a blanket approach to tax wrappers is shaving major value off returns. Based on research conducted by the group, he said advisers are not always selecting the correct wrapper for certain assets and losing money for clients as a result. “Simple decisions such as whether to use a collective investment or an insurance bond can have a substantial effect on the clients r...