Endowment policies underwritten by Hollard Life are taxed within the individual policyholder fund in accordance with Section 29A of the Income Tax Act as amended from time to time. The individual policyholder fund is subject to income and capital gains tax at the prevailing rates prescribed by legislation. Policy proceeds paid out to policyholders are net of tax.
The tax charge determined by Hollard Life may change because of a change in circumstances including, inter alia; changes to tax legislation (including regulations) impacting current or potentially prior years, a corporate action or any other reason not anticipated at the inception of the policy. Any such change would be subject to review by the Head of Actuarial Function (HAF), acting as an independent party advising the Board for Hollard Life. Prior written notice will be provided in the event of a change.
Tax relating to taxable capital gain and taxable income will be passed on to policyholders in the form of an interest and capital gains tax charge. The tax charges applied are disclosed on the investment quotation / Investment Portfolio list and are subject to change by Hollard Life.
During the Restricted Period of the policy, a tax charge as disclosed on the investment quotation, or detailed in subsequent policy endorsements issued to the policyholder, will be levied on any taxable capital gain or taxable income earned in the Investment Portfolios the policyholder is invested in.
Subsequent to the Restricted Period of the policy, the tax recovery charges will change to the prevailing individual policyholder fund tax rates.
Any amendments to the tax legislation may affect the Withdrawal value of the Policy. Policyholders should obtain independent tax advice, relevant to their circumstances, prior to investing.
The Policy is subject to dividend tax. This will be withheld from the local dividend portion of a distribution received from an Investment Portfolio.