Tax is not generally the most important aspect of investment planning – but your investment returns can be greatly affected by your tax strategy, so it is well worth taking tax into account.
The main drivers of investment planning should be centred on how much risk you are prepared to take. Remember, the longer your investment timescale, the more risk you can probably afford to consider. One way to reduce risk is to diversify over markets and types of investment. Only after you have decided on your basic investment strategy, should you consider the tax implications.
Some investments such as cash deposits are just subject to income tax; others like shares and unit trusts are subject to capital gains tax as well. Who owns your investment, how you own it – eg directly or indirectly – and how long you hold some investments can make a significant difference to the net returns you receive.