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Get in before it's too late

Article Abstract:

Personal equity plans (Peps) can allow UK investors to reduce their liabilities in terms of both capital gains tax and income tax. Companies offering these plans tend to intensify marketing efforts toward the end of the tax year, urging investors to use their allowances. Tax benefits should not rule investment decisions. The UK stock market performed well in 1995 and may not perform so well in 1996. Corporate bond Peps may provide alternatives to deposit accounts, but they also involve risks.

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Investment trusts

Article Abstract:

UK investment trusts increased in popularity from the late 1980s though they are not as popularas UK unit trusts. Unit trusts are more easily understood by investors, and they can be sold more easily. Investment trusts are organized as companies with shares traded on the securities market. Not all investment trusts qualify for a full Pep allowance, and in-house schemes tend to have extra charges for Peps, while this is not the case for unit trusts.

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