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)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)
“Take two kids in competition for their parents’ love and attention. Add to that the envy that one child feels for the accomplishments of the other; the resentment that each child feels for the privileges of the other; the personal frustrations that they don’t dare let out on anyone else but a brother or sister, and it’s not hard to understand why in families across the land, the sibling relationship contains enough emotional dynamite to set off rounds of daily explosions.”
—Adele Faber (20th century)