Keydata Investment Services Limited (in administration) ("KIS")

This is an update produced on 22 July and supplements (or, as appropriate, supersedes) the other questions and answers documents on this website.

Questions and answers - 22/07/09

What is the current position regarding income on Keydata products?
Further to our previous Media Release, we have been in continued discussion with HMRC and other third parties in order to resolve the tax position for KIS investors. This has proved very complex and unfortunately has held up the payment of income and other payments to KIS investors. We hope to be in a position to provide a full update in this regard by 27 July. In the meantime we can provide the following confirmations: 

1. Keydata or Lifemark products invested with Lifemark S.A.

Income will be paid gross. As these have been identified as non ISA eligible products, individuals will now need to include all income paid by the Administrators on their personal income tax return. The Administrators will be obliged to notify HMRC of such payments.  We understand this will be bad news for those individuals who thought they had invested in ISA compliant products.

As previously advised, no early redemptions are possible on these products.

The following products are affected.

KIS life settlement products invested with Lifemark S.A.

  • KEYDATA DEFINED INCOME PLAN (ISSUES 1 - 8)
  • KEYDATA SECURE INCOME BOND 4
  • THE INCOME PLAN (ISSUES 1 - 12 & 14)
  • KEYDATA SECURE INCOME PLAN (ISSUES 1 - 12 & 14)
  • KEYDATA DEFINED INCOME PLAN (SPECIAL EDITIONS)
  • KEYDATA DEFINED INCOME PLAN 5 YEAR SPECIAL EDITION (ISSUES 2 - 8)

Lifemark products invested with Lifemark

  • LIFEMARK SECURE INCOME BOND 1 EURO - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 2 SEK - ANNUAL INCOME
  • LIFEMARK SECURE INCOME BOND 2 SEK - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 3 EURO - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 3 SEK - ANNUAL INCOME
  • LIFEMARK SECURE INCOME BOND 3 SEK - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 4 EURO - ANNUAL INCOME
  • LIFEMARK SECURE INCOME BOND 4 SEK - ANNUAL INCOME
  • LIFEMARK SECURE INCOME BOND 5 EUR - ANNUAL INCOME
  • LIFEMARK SECURE INCOME BOND 5 EUR - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 5 SEK - ANNUAL INCOME
  • LIFEMARK SECURE INCOME BOND 5 SEK - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 7 EURO - QUARTERLY INCOME
  • LIFEMARK SECURE INCOME BOND 8 SEK - QUARTERLY INCOME

2. Cash ISA products where KIS undertakes administrative processing services for third party clients

As previously reported there is no issue with Cash ISA products and payments are being made in the normal course.

Income will be paid on other products as and when the tax position is clarified. This includes redemptions and maturity payments.

Dan Schwarzmann and Mark Batten were appointed as joint administrators of Keydata Investment Services Limited on 8 June 2009 to manage its affairs, business and property as agents without personal liability. Dan Schwarzmann and Mark Batten are licensed to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.