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Personal Equity Plan
A personal equity plan (PEP) was a form of tax-privileged investment account in the United Kingdom, available between 1986 and 1999. History The plans were introduced by Nigel Lawson in the 1986 budget to encourage equity ownership among the wider population. PEPs were allowed to contain collective investments such as unit trusts. The ''single company PEP'', which was allowed to contain shares of a single company, was introduced in 1992. PEPs were superseded by individual savings accounts in 1999, and remaining accounts were converted to individual savings accounts in 2008. Types and privileges Growth in a PEP was free from capital gains tax within the fund and on encashment. Income was free from income tax. When introduced in 1986, the fund was limited to £2,400 (annual allowance), but later increased to two types of PEP: the "general PEP" with an annual allowance of £6,000 and the "single company PEP" with an annual allowance of £3,000. Investments in a general PEP were ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nigel Lawson
Nigel Lawson, Baron Lawson of Blaby, (11 March 1932 – 3 April 2023) was a British politician and journalist. A member of the Conservative Party, he served as Member of Parliament for Blaby in Leicestershire from 1974 to 1992, and served in Margaret Thatcher's Cabinet from 1981 to 1989. Prior to entering the Cabinet, he served as the Financial Secretary to the Treasury from May 1979 until his promotion to Secretary of State for Energy. He was appointed Chancellor of the Exchequer in June 1983 and served until his resignation in October 1989. In both Cabinet posts, Lawson was a key proponent of Thatcher's policies of privatisation of several key industries. Lawson was a backbencher from 1989 until he retired in 1992 and sat in the House of Lords from 1992 to his further retirement in 2022. He remained active in politics as the president of Conservatives for Britain, a campaign for Britain to leave the European Union, and was a prominent critic of the EU. He also served a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Windfall Gain
A windfall gain is an unusually high or abundant income, net profit or profit margin, that is sudden, unexpected, or, at times, anticipated. Types Examples of windfall gains include, but are not limited to: *Unexpected inheritance or other large monetary gift from another *Sweepstakes winnings *Winning a lottery or success in another form of gambling *Returns on investments *Proceeds or profit from a large sale *Game show, or other contest winnings *Employment payroll bonus *Natural resources *Foreign aid *Proceeds from an insurance claim *Settlement from a lawsuit *Discoveries from treasure hunting Uses What people do with windfall gains is subject to much debate. While they differ from one account to the next, most economists hypothesize that the majority of the gains are saved, due to the Permanent Income Hypothesis The permanent income hypothesis (PIH) is a model in the field of economics to explain the consumption function, formation of consumption patterns. It suggests con ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1986 Introductions
The year 1986 was designated as the International Year of Peace by the United Nations. Events January * January 1 ** Aruba gains increased autonomy from the Netherlands by separating from the Netherlands Antilles. ** Spain and Portugal enter the European Community, which becomes the European Union in 1993. * January 11 – The Sir Leo Hielscher Bridges, Gateway Bridge in Brisbane, Australia, at this time the world's longest prestressed concrete free-cantilever bridge, is opened. * January 13–January 24, 24 – South Yemen Civil War. * January 20 – The United Kingdom and France announce plans to construct the Channel Tunnel. * January 24 – The Voyager 2 space probe makes its first encounter with Uranus. * January 25 – Yoweri Museveni's National Resistance Army Rebel group takes over Uganda after leading a Ugandan Bush War, five-year guerrilla war in which up to half a million people are believed to have been killed. They will later use January 26 as the official dat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow, while money received in a series of several time periods is termed cash flow stream. In finance, the purpose of investing is to generate a Return (finance), return on the invested asset. The return may consist of a capital gain (profit) or loss, realised if the investment is sold, unrealised capital appreciation (or depreciation) if yet unsold. It may also consist of periodic income such as dividends, interest, or rental income. The return may also inclu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Services In The United Kingdom
The financial service industry in the United Kingdom contributed £174 billion in 2021, or 8.3% of total UK gross value that year. It represents a boon on the UK, European and global economies. History The sector contributed a gross value of £86 billion to the UK economy in 2004. The industry employed around 1.2 million people in the third quarter of 2012 (around 4% of the British workforce). The estimated amount of total taxes paid by the Financial Services Sector in the year to 31 March 2012 is £63bn, 11.6% of the total UK government tax receipts. See also * Banking in the United Kingdom * Economy of London § Financial services * Economy of the United Kingdom § Financial and business services *Financial centre * Financial services § Financial exports * Global financial system * Insurance in the United Kingdom *List of banks in the United Kingdom * List of institutional investors in the United Kingdom *UK company law British company law regulates corporations formed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bond (finance)
In finance, a bond is a type of Security (finance), security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the Maturity (finance), maturity date and interest (called the coupon (bond), coupon) over a specified amount of time.) The timing and the amount of cash flow provided varies, depending on the economic value that is emphasized upon, thus giving rise to different types of bonds. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure. Bonds and Share capital, stocks are both Security (finance), securities, but the major difference between the two is that (capital) stockholders h ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
HM Revenue And Customs
His Majesty's Revenue and Customs (commonly HM Revenue and Customs, or HMRC, and formerly Her Majesty's Revenue and Customs) is a department of the UK government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. HMRC was formed by the merger of the Inland Revenue and HM Customs and Excise, which took effect on 18 April 2005. The department's logo is the Tudor Crown enclosed within a circle. Departmental responsibilities The department is responsible for the administration and collection of direct taxes including Income Tax, Corporation Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT), indirect taxes including Value Added Tax (VAT), excise duties and Stamp Duty Land Tax (SDLT), and environmental taxes such as Air Passenger Duty and the Climate Change Levy. Other aspects of the departmen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The union has a total area of and an estimated population of over 449million as of 2024. The EU is often described as a ''sui generis'' political entity combining characteristics of both a federation and a confederation. Containing 5.5% of the world population in 2023, EU member states generated a nominal gross domestic product (GDP) of around €17.935 trillion in 2024, accounting for approximately one sixth of global economic output. Its cornerstone, the European Union Customs Union, Customs Union, paved the way to establishing European Single Market, an internal single market based on standardised European Union law, legal framework and legislation that applies in all member states in those matters, and only those matters, where the states ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1986 United Kingdom Budget
The 1986 United Kingdom budget was delivered by Nigel Lawson, the Chancellor of the Exchequer, to the House of Commons on 18 March 1986. It was the third budget to be presented by Lawson, and saw the start of a programme of tax cuts initiated under the leadership of Conservative Prime Minister Margaret Thatcher. Lawson set the theme of his budget as "popular capitalism" and stated his wish to turn a nation of homeowners into a nation of shareholders. As well as a cut in the basic rate of income tax from 30% to 29%, there were other changes to taxation. 1986 was also the year the chancellor announced the launch of the Personal equity plan (PEP), a tax-exempt plan that would allow ordinary members of the public to invest up to £2,400 a year in equities. Labour leader Neil Kinnock, the leader of the Opposition, dismissed the budget as a "bits and pieces budget" that promised " jam tomorrow". Overview Lawson's idea with "popular capitalism" was to create a society "in which more a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Income Tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income. The tax rate may increase as taxable income increases (referred to as graduated or progressive tax rates). The tax imposed on companies is usually known as corporate tax and is commonly levied at a flat rate. Individual income is often taxed at progressive rates where the tax rate applied to each additional unit of income increases (e.g., the first $10,000 of income taxed at 0%, the next $10,000 taxed at 1%, etc.). Most jurisdictions exempt local charitable organizations from tax. Income from investments may be taxed at different (generally lower) rates than other types of income. Credits of various sorts may be allowed that reduce tax. Some jurisdictio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Capital Gains Tax
A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property. In South Africa, capital gains tax applies to the disposal of assets by individuals, companies, and trusts, with inclusion rates differing by entity type and with special provisions for primary residences and offshore assets. Not all countries impose a capital gains tax, and most have different rates of taxation for individuals compared to corporations. Countries that do not impose a capital gains tax include Bahrain, Barbados, Belize, the Cayman Islands, the Isle of Man, Jamaica, New Zealand, Sri Lanka, Singapore, and others. In some countries, such as New Zealand and Singapore, professional traders and those who trade frequently are taxed on such profits as a business income. In Sweden, a so-called investment savings account (ISK – ''investeringssparkonto'') wa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
