Its deposit versions are, subject to the eligibility of the investor, covered by the FSCS and have their returns taxed as income while any profits from the plans are treated as capital gains and taxed accordingly.
The shorter five-year version offers investors a rate of return linked to the growth in the Halifax House Price Index (‘HPI’) plus 7.5%, while the slightly longer five and a half-year product offers HPI plus 10%.
Unlike direct property investments, capital is not at risk from falling house prices, and investors will still receive a positive return if the index falls by less than 7.5% and 10% respectively.
Chris Powell, head of IFA sales at Jubilee FP, said: ‘We have long been told to invest in ‘bricks & mortar’ as a long term store of value and as a hedge against inflation but with the level of house prices today this has become increasingly untenable for many investors, including SIPP/SSASs, though equally relevant.
“To be able to offer an exposure to the upside without the costs of owning and maintaining property directly makes this product an attractive addition to a portfolio.”
The product is administered by Bank of New York Mellon and is accompanied by a marketing brochure.
