Written by Editorial Team
9th July 2019

Investment ISA – Potential For 14.4% Tax Free For Each Year Invested

Looking for investment ISA ideas?

The opportunity for 14.40% growth tax free for each year invested…

“If the value of the FTSE had risen 5% in two years’ time, and you received a 28.8% growth payment along with a return of your initial capital, would you consider that a good investment?

Mariana’s latest issue of their 10:10 Plan measures the FTSE 100 Index at the start of the plan, and then every year thereafter from year 2 onwards. If the FTSE has risen by 5% or more on any of these dates, the plan comes to an end and you receive 14.4% for each year invested (not compounded), along with a return of your original investment. That’s a potential 28.8% growth after 2 years, 43.2% after 3 years, 57.6% after 4 years, and so on.

If the value of the Index is below the required level at the end of each year for the full ten year term, no investment growth is paid, and the return of your initial capital is conditional on the FTSE 100 Index not falling by more than 30% at the end of the term. If it does, your capital will be reduced by 1% for each 1% fall, so your capital is at risk.

The combination of very high growth potential and some capital protection unless the FTSE falls more than 30%, could be appealing to investors who think the FTSE may rise in the coming years.”

Oliver Roylance-Smith, head of savings and investment

The plan contains two additional investment ISA options for investors that think the FTSE is more likely to stay flat or go down slightly.

More Plan Details »

Plan details: a maximum 10 year structured investment plan with the potential to mature early (‘kick out’) at the end of each year from year 2 onwards, provided the FTSE 100 Index has risen by at least 5%. If it has, the plan will kick out and return 14.40% times the number of years the investment has been in place (not compounded). The plan includes 2 further investment options, offering 9.0% per year provided the Index has not fallen by up to 17.5% at the end of the plan term, or 11.75% for each year invested provided the Index is at or above its starting level – see the plan brochure for further details. Returns are not guaranteed. Capital is at risk. Plan designed to be held for the full term. Available for £20,000 ISA allowance, ISA transfers and non-ISA investments. Arrangement fee applies. No annual management charges. Minimum investment £5,000. Application deadlines apply.

Capital is at risk. This is a structured investment plan that is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Investment growth is not guaranteed and there is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.

There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The past performance of the FTSE 100 Index is not a guide to its future performance.

Tax treatment of ISAs depends on your individual circumstances and legislation which are subject to change in the future. ISA transfer charges may apply, please check with your provider.

Fair Investment Company does not offer advice and any investment transacted through us is on a non-advised basis. If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.