In the Budget statement on 12 March the Chancellor, Alistair Darling, confirmed a radical simplification of Capital Gains Tax (CGT) from 6 April 2008. CGT is proposed to change to a new single rate of 18%. For savers, particularly those paying tax on building society and bank deposits, this constitutes a great opportunity to increase your net returns.

There are a number of low-risk investments from major financial institutions that are taxed as capital gain rather than income.

If you would like to receive details of these tax-efficient plans, please type CGT in the enquiry details box at Contact Us

Or fill out the Coupon Form as advertised in the Daily Telegraph and Sunday Telegraph by clicking here.

To see the effect that different tax rates can make, we show the interest that you could currently receive from the top, fixed-rate deposit bond on offer (Halifax 5 Year Bond) and the return on our selected CGT based investment, the Barclays Defined Returns Plan (this is not a deposit account it is a structured investment plan, the growth is not guaranteed but it does protect the capital in full):

THE IMPACT OF TAX OVER FIVE YEARS

For example: an Investment of £50,000 for 5 Years

Best fixed-rate deposit

Nil tax

Net 20% Income Tax

Net 40% Income Tax

Halifax 5 Year Bond   6.05% pa gross interest

£17,069

£13,329

£9,758

Chosen CGT Plan

Nil tax

Net 18% CGT

Net 18% CGT

Barclays Defined Returns 40% potential return*

£20,000

£16,400

£16,400

 

Source deposit: www.moneyfacts.co.uk 3 June 2008.

*Returns payable so long as the FTSE 100 Index is at or above its starting level at the end of the term, capital repayable in full regardless of market performance if held to maturity. In the case of the FTSE 100 falling over the five years only the capital of £50,000 would be returned. The table is based on tax rates for 2008/09 which could change during the term altering the figures.

The investments selected by Chandos Rose do not put your capital at risk.