Article Abstract:
The UK Labor party has a reputation for imposing high taxes. Tax rates are unlikely to be as high as they were in the 1970s, if the party wins an election, but rates for high levels of income could be raised. Investors may seek to use offshore funds in order to reduce their tax bills. This is not always the best solution. UK residents are still liable to tax on income and capital gains from offshore funds. Offshore funds tend to be more expensive. Investors may also pay double taxes if there is no tax treaty with the country where the funds are based.
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Article Abstract:
Personal equity plans (Peps) have become increasingly popular in the UK due to their tax advantages and improvements in tax regulations relating to Peps. They offer freedom from capital gains tax (CGT) to a limit to 5,800 pounds sterling which will increase to 6,000 in 1995. Investors should consider the charges imposed by companies selling Peps. Unit trust Peps tend not to make additional charges, on top of underlying trust charges, while Peps involved in single shares or investment trusts do make such additional charges.
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Article Abstract:
UK investors selecting a personal equity plan (Pep) without financial advice should not be overly concerned about investing before the end of the tax year unless they later wish to exceed limits for such investments. There is little reason to buy prior to the 1997 election though there may be more reason to buy prior to the first budget. Past performance can provide a guide, but data can be manipulated. Consistency of performance and average annualised returns are two good ways to assess performance.
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