Preference shares

Article Abstract:

UK investment trust zero preference shares have become increasingly attractive in the 1990s. New issues have been increased and the tax authorities have issued a document proposing taxation of capital gains on preference shares as though they were income. This led to a drop in the value of such shares. The government subequently announced that no change would be made in how zeros would be taxed. Zeros offer an alternative to deposit accounts and government securities which is tax efficient.

Taxation, Preferred stocks

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Small gains to many

Article Abstract:

UK tax changes in the Nov 1995 Budget include a reduction on tax on income from savings of 5% to 25%, but higher rate taxpayers still have to pay 40%. Income from rented property will still be subject to 25% tax despite the desire of the government to stimulate private rented housing. Income from share dividends is already subject to 20% tax, so savings accounts come in line with this type of investment, and the majority of life insurance policies will also be subject to tax at 20%.

Economic policy, Fiscal policy

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The well advised will inherit most

Article Abstract:

Inheritance tax affects few people in the UK. Income tax accounted for some 73 billion pounds sterling, and inheritance tax for some 1.4 billion pounds in 1994. Estates are taxed when they are worth above 154,000 pounds sterling, with only the excess taxed. Avoidance is possible through allowances and exemptions. Gifts are not taxed if they are made over seven years prior to the death of the giver, but gifts should not be made if givers cannot afford to do so.

Inheritance tax

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