Now's the time to pick up a PEP

Article Abstract:

There is still strong demand in the UK for personal equity plans (PEPs), despite concerns about over-valued stock markets. Sales have been partly boosted by the abolition of new PEPs from Apr 1999. From that time, existing PEPs will be ring fenced, thus staying in force, or transferable into an Individual Savings Account. It is worthwhile moving cash into PEPs at this stage for long-term savings purposes. However, before investing in a PEP care should be taken to ensure that any commission paid on the plan is justified by the advice received.

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The ISA man cometh

Article Abstract:

The introduction of Individual Savings Accounts (ISAs) by the UK government has reduced annual allowances for tax-free investments by half. The maximum subscription to an ISA in the 1999 to 2000 tax year is 7,000 pounds sterling, falling to only 5,000 pounds sterling in subsequent years. ISAs offer exemption from capital gains and income tax, and have a wide range of permitted investments. ISAs can hold a much wider range of fixed-interest securities such as UK and foreign corporate and government bonds than personal equity plans.

United Kingdom, Financial management

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Stocking fillers that won't give the taxman a Christmas bonus

Article Abstract:

Parents who wish to invest on behalf of their children should be aware that only the first 100 pounds sterling of investment income can be taken tax-free, with the rest being taxed at the parents' highest marginal rate. However, it is possible to overcome this rule by putting capital into a 'bare trust,' where the trustee does not pay income to the child, or into a bank account in the name of the child. It is also possible to invest on behalf of a child in a roll-up fund that does not produce taxable income.

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