Plan Summary

The Extra Income Plan provides fixed, attractive levels of income or growth and 50% capital protection linked to the performance of the FTSE®100 Index, with the potential to return investor's capital at the end of a 6 year term.

The Extra Income Plan has a tax efficient structure which will appeal to many investors.

Income investors are liable to Dividend Tax at the following rates:

• For basic rate tax payers the amount received will be subject to dividend tax at a rate of 10%. Tax credit will reduce the effective rate of tax to 0%.
   
• For higher rate tax payers a rate of 32.5% will apply. Tax credit will reduce the effective rate of tax to 25%.

Growth investors:

• Tax is payable only on growth which exceeds Capital Gains Tax allowance. A flat rate of 18% over the £9,200 allowance for 2008/09 will apply.

In addition to the income or growth, the Soft Protection provides a full repayment of the original investment unless the FTSE®100 Index falls by 50% or more of its Start Index Level at any time and fails to recover to at least its Start Index Level by the end of the investment term. Under these circumstances, capital will be reduced by 1% for each 1% the Final Index Level is below its Start Index Level.

Regardless of the performance of the indices, income and growth payments will continue to be payable.


Benefits at a glance

• Fixed 7% Annual Income (Paid Quarterly 1.75%) or 50% Growth options.

 

• 50% capital protection barrier - provides growth or income even in falling markets

 

• No averaging - final return calculated on a spot to spot basis

• 6 year investment term.

 

• Tax efficient structure – income subject to dividend tax rebate reducing overall effective rate

 

• Early investment bonus of 4% p.a. gross interest until 22 October 2008.

 

• No initial charges – 100% allocation.