Let us help you through the maze of savings plans.
Individual Savings Plans (ISAs)
ISAs represent a tax-efficient container into which to place cash savings and investments in equities, bonds and insurance policies. These plans can be complicated and a helping hand could guide you around the best options and most suitable funds for your current needs and circumstances.Personal Equity Plans (PEPs)
PEPS are no longer available for new investment but have retained their tax-free status. With effect from 6 April 2008, existing PEPs will automatically become Stocks and Shares ISAs and be subject to ISA rules and unlike their previous closed status, this will allow the option to subscribe to the revised status "ISA" account.Endowment Savings Plans
Endowments are another example of life assurance products acting as a wrapper for basic investments. They are regular premium savings plans in which payments are made monthly for a minimum of ten years. The money is invested, usually in a selection of stocks and shares and at the end of the agreed period the investor receives a lump sum, free from all taxes.Endowments also have an element of life insurance cover that will pay out a lump sum if the investor dies before the agreed term. The amount paid out on death is usually a minimum of 75% of the premiums paid during the term of the plan, as this enables the plan to be "qualifying" for H M Revenue & Customs purposes and therefore free from income tax and capital gains tax when the policy matures. The proceeds could, however, be subject to Inheritance Tax.
As there are different types of endowment - With Profits - Unit-linked - Low Cost and there are more than a hundred different endowment plans offered by product providers in the UK with records in building up a cash lump sum varying dramatically, please contact us for further advice.
The value of an investment can go down as well as up and you may not get back the full amount invested. Past performance is not a guide to future performance.
