The Zurich Wrapper Comparison tool allows advisers to optimise annual capital gains tax exemptions and calculate changes to a client’s marginal tax rate over time.
It shows total cash returns from different product wrappers and relative annual returns.
The tax assumptions built into the tool have been verified by tax specialists from Technical Connection.
Zurich investment management director Paul Wright says advisers have come under increasing pressure to justify product wrapper choice after recent capital gains tax changes. But he says headlines have concentrated on simplistic calculations.
He says: “Too much comment is often focused on only one aspect of the comparison. We want to help advisers and their clients to make informed decisions about their investment choices and with the tax rules built into the model the adviser can select the appropriate asset mix, investment returns and the level of charges.”
Technical Connection partner John Woolley says: “The recent changes to capital gains tax have, in our opinion, reinforced the continuing importance of taking an investor centric approach to investment product wrapper selection. In light of this, well founded, unbiased guidance should be valued by those who have to make this selection.”