NDFA unveils its latest income plan

NDFA has launched the Regular Fixed Income Plan April 08. The five-and-a-half year plan is linked to the FTSE 100 index and offers a fixed annual income of 8% per year. This can be paid in the form of five annual instalments of 8% plus a final payment of 4% for the half year, or as a monthly income of 0.65%.

The income levels are fixed and will be paid despite the performance of the index during the five and a half year term. Capital repayment at maturity is based on the performance of the index.

The plan provides a 50% protection barrier, which if breached, incurs a 1:1 loss in capital. The plan is intended to favourably benefit the new ruling on non-UK dividend taxation that came into force on April 6. Basic rate taxpayers now receive non-UK dividends tax free, meaning that the plan, which buys