Tiered Annual Service Fees (GBP Fractional Bonds)
The following applies only to investments in the GBP Fractional Bonds. EUR Fractional Bonds have 0% Service Fees. All investments made in EUR Fractional Bonds before the end of 2019 will continue to have 0% Service Fees until maturity.
WiseAlpha charges clients a tiered annual Service Fee based on all principal amounts of Fractional Bonds invested in. Fees are collected on a pro rata basis when a borrower makes an interest payment (this is either on a quarterly, semiannual or annual basis). The Service Fee is rounded to the nearest whole penny in your account.
- If you held £50,000 in principal amounts of Fractional Bonds you would be charged 1% on the first £20,000 and 0.75% on the next £30,000 giving an effective annual fee rate of 0.85%
- If you held £120,000 in principal amounts of Fractional Bonds across all of your WiseAlpha accounts (regular, SIPP, Corporate) you would be charged 1% on the first £20,000, 0.75% on the next £30,000, 0.5% on the next £50,000 and 0.25% on the final £20,000 which would give an effective annual fee rate of 0.60%
0.25% Sale Fee Payable only on the principal amount of the Fractional Bonds that are sold prior to maturity.
Interest from WiseAlpha Fractional Bonds is paid to investors without any tax being deducted.
Any income you earn from your investments in WiseAlpha Fractional Bonds forms part of your overall income and is subject to personal or corporation taxation rules. Interest payable to holders on money invested is charged to income tax in the tax year the interest is received. For example, interest received on 31 December 2018 is received in and taxable for the tax year 2018/19.
You should declare any interest and capital gains to the HM Revenue & Customs on a self-assessment tax return if you are an individual or inform your local tax office. If you are in any doubt about your tax position you should seek independent tax advice.