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NDF Administration has introduced a Regular Fixed Income Plan April 08, linked to the FTSE 100 and offering a fixed annual income of 8 per cent.

Recently introduced, the plan is made up of five payments of 8 per cent and a final payment of 4 per cent, or the option of a monthly income of 0.65 per cent on the initial capital invested. Both income levels are fixed and will be paid regardless of the performance of the index during the plan's five and-a-half year term.

Ronan Gelling, marketing manager for NDFA said he expected the plan to be very popular as it took advantage of new and more favourable rules regarding the tax treatment of non-UK dividends.

He said: "The new ruling on non-UK dividend taxation represents a significant saving for investors and the change in taxation will mean that many investors can reap their rewards over the next five-and-a-half years completely tax free.

The firm will close the scheme on 2 June or earlier if it receives a sufficient level of subscriptions.

Glynn Jones, business manager for Manchester-based LEBC Group, said the product was interesting but he had found clients less well inclined towards structured products.

He said: "The capital is not totally protected on this, but that has everything to do with a customer's view of risk.

"To be honest, most of my clients are more interested in taking income from a balanced spread of assets, although this may not be a fair reflection of general opinion."