Money News
HSBC Investments has announced the launch of its Capital Protected Plan and Capital Protected ISA - both designed to appeal to investors seeking tax-efficient solutions in gaining upside exposure to the UK stock market, without putting their capital at risk.
The HSBC Capital Protected Plan and HSBC Capital Protected ISA offer capital protection (subject to withdrawals) and 106% participation in any growth of the FTSE 100 Index at the end of the 6-year capital protected period (the final year of which is subject to averaging).
Investors can also benefit from an early release feature. If the FTSE 100 Index is up by 30% or more at the third year anniversary, investors will receive 130% of their capital protected amount, which is the same as a 30% return on their original investment.
Importantly, the plans are tax efficient. Any realised gain will be taxed as capital gains rather than income, enabling investors to benefit from their annual Capital Gains Tax (CGT) annual exemption amount. As a stocks and shares ISA, the Capital Protected ISA accepts subscriptions up to £7,200 (tax year 2008/09), with no liability to Income Tax or CGT on returns.
The offer period for the HSBC Capital Protected Plan and HSBC Capital Protected Plan runs through May 23rd.
Minimum lump sum investment is £3,000. The maximum investment for a 2008/09 tax year stocks and shares ISA is £7,200. There is no maximum investment if investing in the HSBC Capital Protected Plan or transferring a previous or current tax year's ISA held with HSBC or another ISA Manager.
There are no annual management charges, although there is an initial charge of 7% for the full capital protected period. This is factored into the returns and the 106% quoted upside is net of this charge.
The investment must be held for the full capital protected period in order to receive the benefits described.
10 April 2008 © Moneyextra.com
Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.