Tax Wrapper Comparison Tool - Investment Assumptions

juna

Hello all

I’m currently working on a large case and considering how to split the funds between a GIA and a bond (onshore/offshore).

When using the Quilter and M&G tax wrapper tools, where do you source the expected interest, dividend, and capital return assumptions from?

Many thanks

Nath

It depends on the asset allocation of the portfolio being recommended really.

You can also look at the fund or MPS you are using to get a dividend yield etc too, which can help.

Typical breakdown might look like the following:

• 0.5% to 1% savings income
• 2 to 2.5% dividend return
• 2-3% capital gain

I have found when looking at these tools that in most circumstances the GIA and ISA route, using some gains as you go most of the time appears to be the most tax efficient.

Tax is just one side of things, you also have to deal with the poor admin of 'most' offshore and onshore bond providers too, whereas a decent platform can be so much more efficient.

N