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A taxing problem for dividends

Article Abstract:

UK tax treatment of companies' dividends could affect levels of payments. The UK Institute of Fiscal studies argues that dividend payments are higher in the UK due to tax treatment, and UK payment levels tend to be higher than elsewhere. Companies often continue payouts despite a drop in profits. Markets react to a drop in dividends and this reaction causes more concern than financial costs related to surplus advance corporation tax. A change in regulations would affect pension funds' income.

Dividends

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Taxing problems for investors

Article Abstract:

Tax rules on government securities and bonds in the UK will affect decisions made by investors, as well as the performance of those bonds. Government bonds are not subject to capital gains tax, though income tax is due on the interest they pay. Non taxpayers can choose bonds with a high income. Corporate bonds can provide good returns, though they are less secure than government bonds. Such bonds are not subject to capital gains tax, and can be part of a Personal Equity Plan.

Government securities

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Taxing time for investors

Article Abstract:

UK investors have to send in tax return forms by the end of Oct 1995. Tax assessments should be studied for errors. The tax authorities will repay funds if they have made a mistake, but do not have such an obligation if overpayment occurs because the tax payer has not disclosed information. The tax authorities may charge interest on tax paid late. The rules will be altered when self-assessment is introduced and there will be a deadline for Sep 30 in 1997.

Tax planning

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