E ective CGT rate: 18%. Income tax rate: 45% ... ACCESS TO YOUR SAVINGS. IN THE FIRST 5 YEARS ... has fixed tax rates: 3
ESTATE PLANNING BENEFITS
ENDOWMENT TAX EFFICIENT INVESTING
FOR HIGHER INCOME EARNERS AN ENDOWMENT IS AN INVESTMENT PRODUCT THAT:
1
has fixed tax rates: 30% on income and a capital gains tax (CGT) rate of 12%
2
offers significant tax savings to investors in higher tax brackets
3
holds attractive estate planning benefits
You can appoint beneficiaries, so your investment is paid directly to them (or continued by them) upon your death. As a result, your investment does not attract executor’s fees: a saving of up to 3.99% (incl. VAT) of the investment amount.
IMPORTANT PRODUCT FEATURES
5-YEAR MINIMUM INVESTMENT PERIOD
ACCESS TO YOUR SAVINGS IN THE FIRST 5 YEARS 1 interest free loan 1 surrender
TAX BENEFITS
and/or
Limited to the capital amount invested +5% interest.
ADD TO YOUR INVESTMENT, WITHIN LIMITS INDIVIDUALS WITH MARGINAL TAX RATES >30% (E.G. 45%)
TRUSTS WITH 45% TAX RATES AND NATURAL PERSONS AS BENEFICIARIES
Income tax rate: 45% Effective CGT rate: 18%
Income tax rate: 45% Effective CGT rate: 36%
If your yearly contribution exceeds 120% of your yearly contribution in either of the 2 years before, a new five-year period starts.
INVESTMENT FLEXIBILITY •
no asset class restrictions
WHEN INVESTING IN AN ENDOWMENT:
WHEN INVESTING IN AN ENDOWMENT:
In new-generation endowments (e.g. those offered by investment platforms):
Income tax rate: 30%
15%
Income tax rate: 30%
•
6%
Effective CGT rate: 12%
Effective CGT rate: 12%
15%
• 24%
•
a wide range of investment options ability to switch between these with ease no early termination penalties
