Chapter 4 - Investment Tax Wrappers Flashcards
1
Q
What is an Innovative Finance ISA?
A
Covers peer to peer lending to match lenders with borrowers so each enjoys better rates. Investors who lend also receive their interest tax free.
2
Q
What are the details of a Lifetime ISA (LISA)?
A
Age 18 but under 40 can open one and contribute £4,000 per tax year.
Government bonus is 25%
Can be used towards first house worth up to £450,000
Can continue to contribute up to age 50, will need to withdraw at age 60.
3
Q
What is a with-profits whole of life plan?
A
They pay a guaranteed amount plus any profits made during the period between the policy being taken out and death.
4
Q
What is a Unit-Linked whole of life plan?
A
The return will be directly related to the investment performance of the units in the insurance company’s fund.
