Beware the urge to bond with your Pep

Article Abstract:

UK corporate bond personal equity plans (Peps) have been popular in 1996, but this may be due to success in marketing them. They are not suitable for all types of investor, and present risks if interest rates rise. They can provide a higher income than building society accounts, but capital can be affected by rising interest rates, and UK interest rates look set to rise following an election which is likely to be held in 1997. Investors should choose these products if they are prepared to accept some capital erosion and are already planning to invest in bonds.

Capital market, Capital markets

---

Steering clear of CGT

Article Abstract:

Capital gains tax is likely to affect UK investors for some time despite promises made by the ruling Conservative party that it will be abolished over the longer term. Investors have a number of ways of reducing their tax bill and even paying no tax at all. These include using their allowances and using products which provide tax relief. Such products include personal equity plans. Reinvestments are also permitted using vehicles such as Enterprise Investment Schemes and Venture Capital Trusts.

---

Coming to a point

Article Abstract:

There have been changes to the way that capital gains tax (CGT) is calculated in the United Kingdom. The indexation allowance has been abolished, and relief is tapered according to how long the assets have been held. Investors should not make investment decisions simply on the basis of their tax position. Taxpayers should remember that they have an annual CGT allowance which is worth 6,800 pounds sterling in 1998, so there may be no need to calculate CGT.

Public Finance Activities, Personal Tax Planning, Personal Taxes-Capital Gains, Personal income tax

Similar abstracts:

• Abstracts: Beneath the concrete and the clay. Facing the music. Under analysis
• Abstracts: Local return factors and turnover in emerging stock markets. An empirical investigation of short-selling activity prior to seasoned equity offerings
• Abstracts: Promised land. Keeping track of shopaholic companies. Arab stock markets: on the map
• Abstracts: Portsmouth and Sunderland. United News and Media. Johnston Press
• Abstracts: British Land. Shaftesbury

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.