Abstracts » Business

Balancing the books

Article Abstract:

Investors in stocks in Britain need to assess their liability to income tax and capital gains tax. Married couples should ensure that each uses their allowance, and they can use a tenancy in common if they want stock ownership to be unequal. Capital gains taxes are not levied on dividends, but apply to increases in value of assets at the time of their sale or transfer to a third party. There are two types of relief, taper relief and indexation relief, depending on when the stocks were purchased.

Personal Tax Planning, Taxation, Tax administration and procedure, Tax administration

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Zeroing in

Article Abstract:

Investors can use zero dividend stocks to gain access to the stock market without taking on too much risk. The stocks are part of split capital investment trusts which aim to provide investors with a pre-set sum, usually on a specific date, and their life usually lasts ten years. There is no annual dividend, and gains are made through capital. Payouts have greater certainty when zeros are closer to repayment. There are tax plannng advantages to taking returns in the form of capital.

Investment Offices, Investment Companies, Open-End Investment Funds, Economic aspects, Zero coupon securities

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Growing into the distance

Article Abstract:

Bond funds are often recommended to investors seeking an income, since they can provide high headline rates, but there is increased risk to capital with investments aiming for higher returns. Bond funds invest in securities paying interest such as loans to companies, preference stocks, and government securities. Credit diversification can be used to control risk to capital, while currency hedging can be used to control exchange rate risk. Capital growth funds may offer better returns than bond funds, and investors can cash in units to gain income. A wide range of bonds can be used for British individual savings accounts.

Personal Financial Mgmt

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