Erosion of Tax Privileges
From 6 April 1999, the Advanced Corporation Tax relief on share dividends received on a PEP was halved, partially ending their tax exempt status. From 6 April 2004 all relief on dividends was removed, although no additional tax on a higher rate is due where otherwise it might be. Gains on capital and all other forms of income such as cash interest and bond income remained tax free. Significant cash holdings for any length of time are discouraged by the HM Revenue and Customs and the holdings in a PEP should be largely based on shares or corporate bonds.
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Famous quotes containing the words erosion of, erosion, tax and/or privileges:
“Inter-railers are the ambulatory equivalent of McDonalds, walking testimony to the erosion of French culture.”
—Alice Thompson (b. 1963)
“Inter-railers are the ambulatory equivalent of McDonalds, walking testimony to the erosion of French culture.”
—Alice Thompson (b. 1963)
“As a Tax-Paying Citizen of the United States I am entitled to a voice in Governmental affairs.... Having paid this unlawful Tax under written Protest for forty years, I am entitled to receive from the Treasury of “Uncle Sam” the full amount of both Principal and Interest.”
—Susan Pecker Fowler (1823–1911)
“Solomon’s ... excess became an insult upon the privileges of mankind; for by the same plan of luxury, which made it necessary to have forty thousand stalls of horses,—he had unfortunately miscalculated his other wants, and so had seven hundred wives....
Wise—deluded man!”
—Laurence Sterne (1713–1768)