tax
Most people invest in financial products and funds because
they believe these will bring them superior returns. However, the
tax implications of any investment should also be considered as
they could reduce or wipe out some of your
gains.
That said, you should not “allow the tax tail
to wag the investment dog.” This is because although some
investments are highly tax privileged (such as venture capital
trusts, EIS and Aim shares), these are also high risk
investments which could result in you losing a large portion of
your capital.
This is why it is usually a good idea to take
advice from an independent financial advice. A good IFA
should be able to advise you on the tax implications of any
investment you make as part of the ‘reasons why’ letter you should
receive.
Furthermore, if an IFA gives you inappropriate advice you have
recourse to the Financial Ombudman Service.