Scottish Widows policyholders who took their demutualisation windfall as a
loan note have their second opportunity to redeem their windfall on
The life office is sending out reminders to more than 63,000 customers who
chose loan notes to mitigate against capital gains tax liabilities.
Holders must submit their redemption instructions by August 31 to redeem
the loan in September. The interest rate payable over the current interest
period has been set at 4.83 per cent.
The first redemption date was March 31 when £340m was issued to more
than 49,000 loan note holders.
Cheques for the value of the loan note will be posted on September 27 and
a separate payment will be made for interest from March 31 to September 27.
The interest is paid net of 20 per cent income tax.
There will be further opportunities to redeem loan notes every six months
until March 31, 2008.