|
Is this product
right for you? |
|
To help you
decide if the Plan is right for you, here is a summary of key points
you should think about. Before investing, please consider not only
the benefits but also all of the risks associated with buying such a
product and the commitment you are making.
|
|
Yes,
I am happy to invest because:
• I want to know the money that I invest will be repaid at
maturity when held for the full term.
• I want the opportunity to receive a return that might be
greater than that provided by an ordinary deposit account at
the end of the five year investment term.
• I like the idea of participating in an investment
which links my return to changes in the value of
commodities.
• I am unlikely to need access to my money over the next
five years
|
|
No ,
this plan probably isn’t right for me
because:
• I may need access to some of my money before maturity,
especially in case of unexpected emergencies and I cannot
risk getting back less than I invested
• I don’t want to risk investing into an area I know little
about
• I don’t want to risk getting less under the Plan than I
would have done in an ordinary deposit account – or no
return at all
• I want a regular income from my money
• I am a regular saver and I prefer to be able to add to my
investments from time to time |
Things to consider
There is a risk that the issuing institution – Barclays
Bank PLC - may fail to meet its obligations. Barclays
Bank PLC’s capacity to meet its financial commitments is
deemed very strong. This is supported by a number of
independent assessments from leading credit rating
agencies such as Standard & Poor’s, where the rating is
‘AA’, which has remained unchanged since 1994.
In addition, the terms of the investment may permit the
issuer of those investments to withhold, defer, reduce
or even terminate payments in certain events, as a
result of which you may receive less than you would
otherwise or may have to wait for the proceeds.
Access
to your money will be restricted
You should only invest in the Commodity
Select if you are sure that you will not need to access
your invested capital over the investment term. If you
withdraw early, you are unlikely to receive back the
full amount you originally invested.
Will I get an income?
No, the objective of the investment is
to provide capital growth and, at the same time, the
assurance you will get at least your capital back at the
end of the five-year term.
You need to consider inflation
Remember, whatever the return at
maturity, inflation over the investment term will have
reduced the value of what you may receive.
You need to be aware of how commodity prices change
relative to an investment in shares
Commodity prices do not always change in
the way that share prices do. Factors influencing prices
are typically different: political risks around the
world, demands from emerging economies and limits on
production. This can lead to relatively quick and
substantial changes in price (up or down) in comparison
to general equity investment.
Tax issues
Capital Gains Tax
If you invest directly into the
investment (outside of an ISA) the returns will normally
be subject to Capital Gains Tax (CGT). Gains subject to
CGT can be offset against your CGT exemption in the year
of maturity. All UK resident individuals have an annual
CGT exemption (for 2008/09 it is £9,600) which means
that the total of gains made by an individual up to this
amount in a tax year will be free of CGT. This could
include the gains made under the Commodity Select in the
year of its maturity.
Any gain achieved in excess of this amount is liable to
tax at the CGT rate in the year when the investment
matures (which at current rates, would be 18%). If you
invest in a Stocks and Shares ISA there will be no
further obligation on you to pay tax.
The rates of tax and allowance quoted are those applying
in the 2008/09 tax year. These rates and the basis of
taxation may change.
Investing via an ISA
There are two main types of ISA – the Stocks and
Shares ISA and a Cash ISA. Stocks and shares (such as
the investments within the Commodity Select) and cash
can be invested into an ISA. Investors can have up to
one Stocks and Shares ISA and one Cash ISA in any one
tax year, providing they do not exceed their annual
allowance – for the 2008/09 tax year this is £7,200,
although the maximum investment into a Cash ISA is
£3,600.
You can only use your ISA allowance(s) once in any tax
year, so if you use it to invest and later decide to
withdraw your money, you will not be able to invest in
an ISA of the same type in the same tax year. Similarly,
if you invest less than £7,200 in a Stocks and Shares
ISA it may not be possible to open another Stocks and
Shares ISA in the same tax year and so you will lose the
remainder of your allowance for the tax year.
It is important to remember that the favourable
treatment of ISAs might not continue. Existing ISAs may
lose their tax advantages and new ones might not be
permitted, although the Government has stated that it
sees ISAs as a key savings vehicle outside pensions. The
value to you of any favourable tax treatment depends on
your individual circumstances. You should bear in mind
that tax rules can change.
Please refer to the Brochure and the Terms & Conditions for full
details. |
