A shift to fixed interest

Article Abstract:

United Kingdom company pension schemes are changing their investment strategies and moving toward bonds and away from equities. This follows a change in UK tax rules which was introduced in Jul 1997. Tax credits for advance corporation tax has ended, while other changes mean that companies have to increase their contributions and later investment balances. The end of tax credits means that equities become less attractive. The change is likely to affect equity and bond markets, though the effect on equities has not been as bad as feared.

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Annuities set to bloom in the spring

Article Abstract:

Taxation of income from savings has been reduced to 20% rather than 25% for savers paying the basic rate of income tax, following the UK Nov 1995 Budget. Annuities are still taxed at the top rate if they are purchased from a pension fund, though there is some improvement if annuities are purchased from savings. Changes in rates for government securities also affect annuities. These changes are linked to trends in world bond markets, inflation, and rates of interest.

Taxation, Annuities

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What a carry-on

Article Abstract:

UK taxpayers can benefit from tax advantages offered by pensions which compare favorably with other methods of saving. Taxpayers can use up relief from previous years if they plan to increase their contributions. The forms required depend on whether the taxpayer is self-employed or an employee, and the rate of tax paid. Contributions have to be paid by the end of the tax year and the forms have to be filled in by Jul 5 in the following tax year.

Personal Tax Planning, Personal finance, Tax planning, Pensions

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