Warning: The data being used for these calculations is excessively old and
may be inaccurate. Please be careful in applying the results of any
Figures for the collective reflect the fact that income will be distributed as dividends or interest. The calculator assumes therefore that product tax is nil and the personal tax paid during term depends on the 'current tax rate' of the investor. The personal savings allowance and dividend allowance will apply as appropriate. Offshore bond figures assume no internal fund taxation. In practice the income from some investments linked to the bond may suffer irrecoverable withholding tax. Onshore bond figures assume that tax is deducted from the fund at a rate of 20% a year of the capital growth (with no indexation), 20% on interest and 0% on dividends.
Figures for the collective assume that any Capital Gains Tax (CGT) due on a 'cash-in' or 'withdrawal' is assumed to be payable at 20% where the current or expected tax rate is 40% or 45% and 10% otherwise, i.e. it is assumed that the gain does not push a nil or basic rate taxpayer into the higher CGT bracket.
CGT allowance is assumed to increase at 2.0% p.a. It is assumed that the investor is UK resident for tax purposes throughout the term of the investment and at cash-in.
The calculator does not include the effect of any product charges or terms and conditions such as minimum investments.
The calculator is designed to give a general demonstration of the comparative returns from collectives and bonds. It should not be taken as offering advice or any recommendation. Every care has been taken as to its accuracy, but it must be appreciated that neither Prudential International nor its representatives can accept any responsibility for loss, however caused, suffered by any person who has acted or refrained from acting as a result of material contained in this calculator.
Offshore is a common term that is used to describe a range of locations where companies can offer customers growth on their funds that is largely free from tax. This includes "true offshore" locations such as the Channel Islands and Isle of Man, and other locations such as Dublin, where Prudential International is registered. Tax treatment can vary from one type of investment to another, and from one market to another.
The above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.
The registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2.
'Prudential' is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the M&G plc group. Registered office at 10 Fenchurch Avenue, London, EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Please note this calculator assumes the personal tax on a bond gain will all be taxed at the same rate and does not calculate top slicing relief, which may be available depending on the clients circumstances.
With regard to the drop down box to select 'expected tax rate at cash-in', please note that regardless of the size of the gain, the output for 'personal tax paid on cash-in' will not reflect a gain that moves into another tax band.