Budget rush to bed and breakfast
Article Abstract:
United Kingdom stockholders are likely to sell stocks and buy them back in increased numbers prior to the Mar 1998 Budget, in order to use capital gains tax allowances. Capital gains have been high due to stock price rises, and there is concern among investors about possible changes in the Budget. There is a 6,500 capital gains tax allowance, after inflation has been taken into account, but this allowance has to be used by the end of the tax year. Stocks are sold one day and bought back the next in order to realise the gain to use the allowance.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Ways to join tax-free fat cats
Article Abstract:
There are a number of ways in which capital gains tax (CGT) can be avoided in the UK. Small scale investors can use allowances and personal equity plans. They can also use enterprise investment schemes and venture capital trusts if they are prepared to take on more risk. CGT can be deferred on a large scale by taking gains in the form of loan stock, though this can involve a risk if the issuing company encounters financial problems. Reinvestment relief and investment in agricultural land are also waysof avoiding CGT.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Top deals formaking the most of big gains
Article Abstract:
Capital gains tax planning is important after a period when stock prices have risen, and investors need to think ahead. They can realise gains in order to use up allowances which become unavailable at the end of the tax year. This can be done by bed and breakfasting, which involves selling stocks and buying them back again. This should be done for unit trusts as well as direct investments. Charges vary, with some stockbrokers offering special deals for bed and breakfast transactions.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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