Adamski wrote:PinkDalek wrote:Well done but I'm surprised you include the tax relief as part of Total return.Adamski wrote:... Total return 10.3% (profits 8% + 2.3% tax relief in SIPP). ...
It's because I plan, if rules don't change, just take out personal allowance plus tax free 25% from 55, so not pay tax on withdrawals. Although right could have left that out.
I completely agree with Adamski that one should include tax issues when calculating Total Return, in fact I am surprised that more investors don't do so. For example, I have been investing in VCTs for many years. In terms of capital growth, don't expect any, and the dividends are pretty good in many cases, but the tax relief makes them very good investments indeed for anybody who can hold them for five years.
In my opinion, one should definitely include tax considerations when calculating ones investment success or failure.
Gostevie