Pension Avc Tax on reinvestment

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paulh13

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Hi a few years ago, a pension advisor that came to our company stated that investments funded by the proceeds of an avc are also tax free. E.g if on retirement you buy a house with the drawdown received from an avc, the future returns on this investment, i.e rent received, would also be tax free.
I don't see this outlined anywhere so I suspect it may not have been accurate advice. Could anyone confirm this
Thanks
 
No, that's not true at all. Are you sure that you didn't misinterpret what they were saying?

In fact the proceeds of an AVC are not necessarily tax free given that the normal process is to take 25% as a tax free lump sum and the use the remainder to provide an ongoing income in retirement which, along with any other income sources, is assessable for income tax.
 
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I wonder was this guy trying to sell a self directed PRSA AVC which could be used to buy the investment? Or even a self directed ARF of we're talking about post retirement.
 
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