Performance uncertain as PEPs proliferate
Article Abstract:
Personal equity plans (PEPs) are becoming extremely popular in the UK. It is therefore not surprising that more types of PEPs will be introduced in the market for the remainder of 1995. In June or July, fixed-interest PEPs will be launched by incorporating particular corporate bonds, convertibles and preference shares to the plans. Later in the year, a new type will arrive. Given the working title 'open-ended investment companies,' this new PEP will be a unit trust that can be accepted in other European markets. Despite the heated PEP activity, the excitement of investors toward the instrument has subsided. In the aftermath of a weak year in the stock market, they are not as enthusiastic about the tax advantages of PEPs as was expected. They believe that it is more important to assess the benefits of the product and the performance ability of the managers than to look at tax advantages.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Mortgages now
Article Abstract:
Low rate mortgages for first-time borrowers being offered by lenders will ultimately prove to be a disadvantage to borrowers in the long run. For example, the first-time buyer guarantee package from the National and Provincial Building Society has a mortgage rate of 5.95%, significantly lower than the 8.5% variable mortgage rate. However, contracts during such transactions stipulate that borrowers purchase buildings and contents insurance from the society and payment of an arrangement fee of 150 pounds sterling for the loan. In addition, buying of endowment policy and indemnity insurance may also be required. These provisions will ultimately lead to borrowers shelling out more money than what they saved from the offered low rate. To avoid this situation, first-time buyers of mortgages should look for capped rates.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Tessas' tax-free terms
Article Abstract:
Tax Exempt Special Savings Accounts (Tessas) encourage savings by relieving qualified savings accounts of all tax obligations for a five-year period. Tessas were proposed by John Majors when he was still Chancellor of the Exchequer and were finally launched in Jan 1991. Tessa accounts are available to Britons aged 18 or over who may invest up to 9,000 pounds sterling within a five-year tax-free period. The accounts lose their tax-free status if account-holders withdraw any amount other than net interest or if the accounts are used as security for loans. As of March 1992, a total of 10 billion pounds have already been deposited in Tessa accounts by some 3.64 million individuals. Building societies hold about 65% of the accounts while banks have the remaining 35%.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Irrevocable life insurance trusts: one of the last estate and gift tax shelters. Elections provide post-mortem tools for reducing or deferring estate liabilities
- Abstracts: Irrevocable life insurance trusts: one of the last estate and gift tax shelters. part 2 Grantor trusts are now useful planning tools
- Abstracts: Managing to be ahead in the generation game. Angelic mission to make money. Business start-ups: a game of chance?
- Abstracts: Depreciation and car choice. Exec need shifts gear. Diesel do the job
- Abstracts: Benefits of blood and breeding. Literally behind the times