NDFA launches latest fixed income trade

The five-year plan pays a fixed income of 0.5416% per month (6.5% a year) regardless of index performance. The trade has a hard protection barrier of 50%, which means if at maturity the final index level is below 50% of its initial level capital will be lost on a 1:1 basis. The plan, which delivers tax efficient returns for dividend income from non-UK shares, allows basic rate taxpayers to receive non-UK dividends tax-free, while rates are reduced to 25% for higher rate taxpayers.

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