Figures for the collective investment assume that income will be reinvested; the calculator assumes therefore that product tax is nil and the personal tax paid during the term depends on the ‘current tax rate’ of the investor. The dividend allowance will apply as appropriate and the calculation assumes that the dividend allowance is fixed at the initial level throughout the chosen term. Offshore bond figures assume no internal fund taxation although in practice the income from some investments linked to the bond may suffer irrecoverable Withholding Tax. Onshore bond figures assume a deduction towards the company’s Corporation Tax liability at a rate of 18.25% a year on accumulation funds, 19.25% on fund distributions and 20% on interest.

Figures for the collective assume that any Capital Gains Tax (CGT) due on a ‘cash-in’ or ‘withdrawal’ is assumed to be payable at 20% where the current or expected tax rate is 40% or 45% and 10% otherwise, i.e. it is assumed that the gain does not push a nil or basic rate taxpayer into the higher CGT bracket.

HSBC Life (UK) Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our firm reference number is 133435. HSBC Life (UK) Limited is a member of the Association of British Insurers.
Registered Office: 8 Canada Square, London E14 5HQ. Registered in England (United Kingdom) number 88695.