|3 year 7.25% Corporate SME Lending Bond||Not held in IFISA||Held in IFISA|
|Higher rate tax payer||Basic rate tax payer||Basic rate tax payer|
|Interest rate||7.25% p.a.||7.25% p.a.||7.25% p.a.|
|Tax rate payable on interest||40%||20%||N/A|
|Gross interest earned||£725||£725||£725|
|Net interest earned||£435||£580||£725|
|Total capital and interest received by the end of term||£11,305||£11,740||£12,175|
Sources: Investors should note that payments of interest are made after deduction of income tax at the basic rate (currently 20%), unless the bond is held in an IFISA. You should note that your capital is at risk and returns are not guaranteed.