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Julian Gibbs

When does a 10.25 per cent gross yield give a better return to basic-rate

and higher-rate taxpayers than 11.5 per cent gross? The answer is when it

is provided by the innovative new Extra Income and Growth Plan 3 from NDF

Administration, acting as plan manager through a Dublin company backed by

Abbey National Treasury Services.

A basic-rate taxpayer pays only 10 per cent tax and a higher-rate taxpayer

only 32.5 per cent on the income as against 22 per cent and 40 per cent

respectively through an offshore bond.

This new plan pays 10.25 per cent a year over a period of just over three

years or 31 per cent on the growth option. It has no initial or annual

charges and returns are tax-free for Isas and Pep transfers.

It is much safer than most stockmarket-linked bonds in that there is a 100

per cent return of capital even if the Eurostoxx 50 index, which consists

of Europe&#39s 50 biggest blue-chip companies such as Total, Unilever and

Nokia, falls by 25 per cent during the period.

Since the middle of March, when all the major UK and European indices

reached their highs, the Eurostoxx 50 is down by 0.5 per cent. This

compares with the Nasdaq which is still 22.9 per cent below its high,

having fallen by 31.9 per cent. The Eurostoxx is by far the steadiest

index.

This plan gets the highest rating ever from independent research company

Future Value Consultants (www. futurevc.co.uk/research). It scores nine out

of 10 for basic-rate and higher-rate taxpayers.

I believe this is the best high-income deal that has been available for a

long time, especially as the investment is linked to a sound stockmarket

index unlikely to fluctuate by large percentages.

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In Focus — May 2015: private medical insurance market in Germany

Welcome to the latest edition of In Focus. In this issue, Jelf examines the private medical insurance market for employers with expatriate workforces in Germany. This includes the common challenges faced in sourcing appropriate coverage, along with a selection of available solutions. This will be of particular interest to HR/reward decision makers with employees based in Germany. It will assess the cultural norms, risks and backdrop that are relevant to organisations with expatriate staff in this location.

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