The wealth management shortlist includes funds that our analysts believe have the potential to outperform their peers over the long term. If a fund is not pre-selected, it is not a sell recommendation; However, if you`re thinking about increasing your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist » HMRC believes that from April 2013, reductions on annual fees (e.g. loyalty bonuses) paid on funds in nominee accounts such as our Fund & Share account should be subject to income tax. Loyalty bonuses paid on ISA and SIPP funds are not affected and remain tax-exempt. The objective of this fund is to raise capital and obtain a return equal to money market rates before fees. The fund typically invests in short-term deposits, certificates of deposit, (mainly British) sterling government bonds and repo rates in sterling. Under tight market conditions, the fund can invest up to 100% in government and public securities issued by a single issuer. The maximum maturity of the instruments in which the Fund invests is 397 days, but the Fund must have a weighted average maturity of less than 60 days. The bonds in which the fund invests must be investment grade (classified as lower risk). The Fund may use derivatives to reduce risk or costs or to generate additional capital or income without risk or at an acceptable low risk. The Fund may also invest in other fixed income securities, other money market instruments and collective investment schemes. If loyalty bonuses are taxable, the value of our current savings may be reduced for you, depending on the tax rate you pay.
The following table gives an indication of how this may affect you. Keep in mind that the value of your investment and the income from it can go down as well as up and are not guaranteed. You can get back less than you invest. Tax regulations may change in the future and their tax benefits depend on your personal situation. The service will offer the Legal & General UK Index fund for an ongoing annual fee of 0.04%, up from the usual 0.1%, in recognition of its relevance to first-time investment market entrants. Users also receive monthly tutorials to help them better understand the basics of investing, including jargon-buster, FTSE updates, the difference between saving and investing, and explaining the building blocks of an investment portfolio. Danny Cox, Certified Financial Planner at Hargreaves Lansdown, said: “The need to invest in the future has never been necessary. We believe that all loyalty bonuses are tax-free and question HMRC`s interpretation. However, as we rise to this challenge, we pay loyalty bonuses in the Vantage Fund & Share account minus an amount equal to base tax.
If we succeed in our challenge, we will give that money back to the customers. If we fail, we will use the money to pay all amounts owed to HMRC. In some cases, ongoing savings are provided by our loyalty bonus. Loyalty rewards are tax-exempt in an ISA or SIPP. However, they can be taxed into a fund and stock account, which would reduce their value and increase ongoing net fees. The value of an investment and any income derived from it are not guaranteed and can fluctuate down or up, you cannot recover the amount you originally invested. To invest, you need to open an account. Try our handy filter and find out which one is right for you. Past performance is no guarantee of future results.
Keep in mind that past performance is not an indicator of future returns. If no data are presented, no figures are available. This information is provided to help you choose your own investments, keep in mind that they can both go down and up in value, so you can`t get back the original amount invested. On 24 and 31 December, at 3 p.m., prices will be calculated at noon based on the early close of the London Stock Exchange and published as soon as they are available. In this case, the current saving is 0.00%, of which 0.00% is paid by the loyalty bonus. The tax that may be due on this loyalty bonus, and therefore the value of this savings for you, is listed below.