Page 27 - CPB March 21st

You are not protected under Financial Ombudsman in the UK or the Financial Services Compensation Scheme in the UK
Your beneficiaries may be subject to additional taxation
Your personal representatives should liase with the beneficiaries of your Estate after your death and should identify any liability to Inheritance Tax and if there is any such liability, whether there is sufficient cash available within your Estate to pay such tax.
There are many factors affecting the viability of allowing the property to continue to be rented out by Shaw Insurance Group in order to pay down the mortgage debt including but not limited to liquidity in the Estate to meet Inheritance Tax liabilities and the liability to taxation of Shaw Insurance Group in respect of taxation of capital gains made on the property. Your personal representatives may have to bring the arrangement to an end.
In the event of your death, your personal representatives may elect for the property to be transferred to a beneficiary of your Estate pursuant to an assent in consideration of a payment equal to the outstanding mortgage entered into by Shaw Insurance Group together with relevant taxes, costs and charges. Your beneficiaries may be liable to pay Stamp Duty Land Tax (commonly called "SDLT" or "stamp duty") on the total amount of the consideration. This may vary according to the circumstances of the beneficiaries and in particular whether the property might be a second property owned by them. Each of your beneficiaries
should obtain individual advice on the taxation of any such transaction.
As Shaw Insurance Limited is incorporated and managed in Guernsey, it is not regulated by the Financial Conduct Authority. Holders of Care Property Bonds issued by Shaw Insurance Limited will not have the right to complain to the Financial Ombudsman Service in the UK if they have a complaint against Shaw Insurance Limited. Customers will not be protected by the Financial Services Compensation Scheme if Shaw Insurance Limited becomes unable to meet its liabilities to them.
Please refer to the separate sections entitled:
• “HOW CAN I COMPLAIN?”
• “WHAT WOULD HAPPEN IF SHAW
INSURANCE WENT BUST?” • “IS THERE FCA REGULATION”