Navigating the adviser charging tax minefield

Under the Retail Distribution Review (RDR) the client has two choices when it comes to paying adviser charges: they can settle adviser charges directly or the product/investment provider can facilitate them. Where adviser charges are being taken from the product, it is important the adviser fully understands the impact this has on its tax efficiency and investment performance. There will be no tax implications where adviser charges are settled from cash unless the client has to sell assets to generate the cash. Adviser charges settled from stocks and shares will be a disposal for capi...