(a) The calculation is illustrative only. The purpose of this calculation is to provide guidance on the tax efficient investment amount which an investor may consider. The calculation assumes that the investor has no other deductions or exempt income which would reduce the individuals income assessable to the 40% tax rate. You should consult your tax consultant, accountant or professional adviser before making an investment decision.
(b) The tax you will pay at the marginal rate of 40% will be reduced to nil. You will still pay tax at the standard rate of tax.